Starbucks plans to close approximately 250 coffeehouses across North America later this week, affecting about 1% of its network of more than 18,000 stores in the region. The company has not released a list of locations or said how many closures will be in the United States and Canada.

In a September 24 letter to employees, Chief Operating Officer Mike Grams said Starbucks had reviewed its North American stores and identified locations that were unlikely to deliver the customer and employee experience it wants, or did not have a path to acceptable financial performance. The decision comes as the coffee chain continues a wider effort to make its cafés more welcoming and improve service.

Starbucks has announced the approximate number of closures but has not published a store-by-store list. That means customers cannot yet determine from the company’s announcement whether a particular neighbourhood coffeehouse is affected. Grams said Starbucks would help customers at closing locations find nearby stores.

The company said it remains committed to increasing its North American store count over the longer term and is developing new locations. At the same time, it is updating existing cafés to make them more comfortable and inviting. Starbucks expects to complete upgrades at 1,500 coffeehouses by September 30, the end of its fiscal year. The closures and upgrades are separate parts of its review of how stores perform and serve customers.

Starbucks said it is speaking directly with employees at the affected stores and will offer transfers to other coffeehouses wherever possible. Employees whom it cannot place at another location will receive severance support. The company has not announced how many workers will need transfers or how many may leave.

The announcement also raises questions about union-represented stores. Starbucks did not specify how many of the locations it plans to close have voted to unionize. Without an official breakdown of affected stores, the impact on union members remains unclear.

For customers and workers, the immediate detail to watch is the location list as Starbucks communicates its decisions store by store. For the company, the closures mark another step in its plan to concentrate investment on coffeehouses it believes can deliver both a stronger customer experience and sustainable financial results.