SUCCESS

Starbucks has spent the past two years changing its coffeehouse business, investing in store renovations, improving customer service, and trying to bring customers back.

And the efforts appear to be paying off. U.S. comparable-store sales rose 7.9% in its latest reported quarter, while customer transactions increased 4.2%.

In September, CEO Brian Niccol declared, “Starbucks is back,” signaling confidence in the company’s turnaround strategy.

Also read: Wawa, Sheetz, 7-Eleven face new challenge keeping shoppers coming back

But stronger sales have not stopped the coffee giant from closing underperforming locations and eliminating jobs. It is all part of its strategic return.

An Oct.7 regulatory filing identifies five permanent Starbucks coffeehouse closures in Washington state, affecting 43 store employees, as well as 8 additional job cuts at its Seattle headquarters.

In total, 51 employees are affected, with employment terminations scheduled between Nov. 14 and Dec. 4, 2026.

The latest disclosures follow another 5-store closure notice filed in Washington earlier this year. 

Meanwhile, 2 Starbucks locations at Seattle-Tacoma International Airport are also set to close following a separate decision regarding concession contracts.

Starbucks closes five coffeehouses in Washington

According to an Oct.7 Worker Adjustment and Retraining Notification (WARN) reviewed by TheStreet, Starbucks identified five locations for permanent closure across Seattle, Redmond, Spokane, and Vancouver.

The filing lists the following coffeehouses and affected employees:

LocationAddressEmployees affectedRedmond7625 170th Ave NE15Seattle9150 Rainier Ave S5Seattle999 Leary Way NW6Spokane2401 W Wellesley Ave13Vancouver918 SE 164th Ave4Total store employees43

Separately, Starbucks disclosed 8 permanent job cuts at its Seattle headquarters at 2401 Utah Avenue.

The affected corporate positions include an accountant, a director, a senior manager, a project manager, two managers, and two service representatives.

However, not all 51 affected employees will necessarily lose their jobs. Starbucks said some store employees would be offered transfers to nearby coffeehouses.

The filing also confirmed that employees at the Redmond and Spokane locations are union-represented.

One closure stands out for another reason.

The Starbucks at 999 Leary Way in Seattle opened in Feb. 2026 but closed in late September, just eight months later.

Starbucks previously closed five Seattle stores in 2026

The Oct. filing is not the first time Starbucks has disclosed multiple store closures in Washington this year.

A separate WARN notice dated March 27 identified five Seattle coffeehouses scheduled to close between March 29 and April 5, affecting 69 employees.

Those closures included locations on Madison Street, University Way, Minor Avenue, Harrison Street, and Sand Point Way.

Together, the March and October notices identify 10 distinct coffeehouses and 120 affected employee positions, including the eight headquarters jobs in the October filing.

The repeated disclosures come alongside corporate workforce reductions in Seattle.

As TheStreet previously reported, Starbucks disclosed in August that 224 headquarters employees were affected, including approximately 120 who declined transfers to its expanding Nashville operations.

The company has also been consolidating regional offices and streamlining its corporate organization.

Two Starbucks locations close at Seattle airport

Starbucks is also preparing to lose two coffeehouses at Seattle-Tacoma International Airport, although these closures are unrelated to its corporate restructuring.

An Oct. 23 WARN notice filed by airport concession operator HMSHost confirms that its Starbucks location in Concourse A will permanently close as its airport contract expires.

The notice states that approximately 13 employees are expected to lose their jobs between Dec. 31, 2026, and Jan. 13, 2027.

However, there is a discrepancy in the filing.

While the letter identifies approximately 13 affected employees, its attached roster lists roughly 135 positions, including baristas, utility workers, and managers. Washington state’s WARN database also records 135 affected workers.

The difference has not been publicly clarified.

Related: Dollar General accused of overcharging shoppers, settles for $1.9 million

Another Starbucks in Concourse C is also set to close, but its WARN notice has not yet been issued, and the precise store closure dates have not been announced.

The changes follow a competitive bidding process in which the airport selected 17 new dining and retail locations.

In its Sept. 15 announcement, the Port of Seattle confirmed Anchorhead Coffee and The Flora Bakehouse among the selected businesses.

Starbucks expressed disappointment that its concession contract was not renewed, telling local media it hopes to expand its presence at the airport again.

Once both locations close, two Starbucks coffeehouses will remain at the airport.

The airport closures are decisions made by the concession operator and the Port of Seattle, rather than part of Starbucks’ company-operated store closure program.

Why Starbucks continues to close stores?

The Washington closures are part of Starbucks’ broader “Back to Starbucks” restructuring, which aims to improve the customer experience while eliminating locations that do not meet its financial or operational expectations.

In a Sept. 24 announcement, Chief Operating Officer Mike Grams said Starbucks had identified approximately 250 North American coffeehouses for closure.

“While most are benefiting from this overall momentum, some coffeehouses continue to underperform,” Grams said.

According to the company’s September SEC filing, Starbucks expects approximately $300 million in restructuring charges, including $200 million in cash expenses primarily for lease exits and employee separation benefits.

The company had already reduced its U.S. store network before the announcement.

According to its third-quarter fiscal 2026 earnings report, Starbucks operated 16,933 U.S. locations at the end of June, down from 17,230 a year earlier.

Notably, Starbucks removes permanently closed coffeehouses from its comparable-store sales calculations beginning the month after closure.

This means improving sales at continuing locations do not necessarily reflect the performance of every coffeehouse in its network.

At the same time, Starbucks continues investing in renovations, faster service, and more comfortable seating, with a target of completing at least 1,500 coffeehouse upgrades in North America.

For customers losing their neighborhood Starbucks, the company says it will direct them to nearby locations. Employees who cannot be transferred will be offered severance support.

Starbucks is scheduled to report its fourth-quarter and full-year fiscal 2026 earnings on Oct. 29.

The results will provide a clearer picture of whether the coffee giant maintained its sales momentum and how its restructuring is affecting the business.

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Federal Reserve Chairman Kevin Warsh, despite dropping traditional forward guidance on interest-rate paths, recently said the central bank is focused on “removing a dose of accommodation.” 

For retail investors, this means the era of artificially cheap money is over, and navigating a higher-rate normal is essential for portfolio strategy.

Markets expect the policymaking Federal Open Market Committee will decide on a hawkish pause at its Oct. 27-28 meeting, despite hiking short-term interest rates 25 basis points to 3.75% to 4.0% at its September meeting. 

But strong economic vibes, supported by reporting from many Wall Street banks and the CME Group FedWatch Tool, indicate at least one more 25 basis-point hike as early as the next FOMC meeting Dec. 8-9 to mitigate persistent inflation.

Melissa Brown, global head of investment decision research at SimCorp, told TheStreet in an exclusive email interview that equity markets have woken up to the real risks of higher inflation and overly rosy revenue assumptions for AI-related companies. 

“With no guidance to dispute the assumption, it seems likely long rates will stay higher for longer,’’ Brown said, adding that higher rates further into the future mean lower valuations right now for companies that rely on high-growth expectations. 

“On top of that, higher government yields mean that current debt has to be issued at higher rates, suggesting that revenues have to be that much higher to cover the debt service,’’ Brown said. “This impacts all companies that issue debt, not just AI, although the amounts of debt they need to issue to finance the infrastructure buildout is enormous.”

Aptus Capital Advisors Portfolio Manager & Head of Fixed Income John Luke Tyner told TheStreet in an exclusive email that there is no doubt that both energy prices and AI borrowing have increased inflation metrics and pushed interest rates higher. 

“We can see both of these dynamics moving markets, although last week showed a bit of a separation between oil prices and rates (moved in opposite directions) and more alignment between rates and some exhaustion within the AI spending frenzy,’’ Tyner said. 

“This is definitely an interesting signpost and at least suggests that the last six months’ rise in rates, plus the Fed’s September hike, could have been a situation where the market did some of the work for the central bank,” Tyner added. 

Fed’s expected rate pause balances its dual mandate

The Fed’s dual mandate from Congress requires maximum employment and price stability. 

Yes, it’s a tricky balance of monetary policy because:

Lower interest rates support hiring but can fuel inflation. This risks fueling further inflation, potentially leading to an inflationary spiral.

Higher rates cool prices but can weaken the job market. This increases the cost of borrowing and further stifles economic activity.

How an interest-rate pause hits your wallet

The CME Group’s FedWatch Tool shows traders pricing in a roughly 10.5% probability of a Fed rate hike at its Oct. 27-28 FOMC meeting with expectations of an 82.3% probability of a rate hike by its Dec. 8-9 meeting.

The Fed’s September interest-rate hike, the first since January 2023, sent ripples through the entire financial system with the most immediate pressure hitting short-term borrowing such as variable-rate credit cards and student loans. 

Related: UBS explains how looming Fed rate hike could impact your investments

Indirectly, it impacted fixed-rate mortgage rates which rely on Treasury yields plus corporate debt and capital investment.

The good news? Interest rates on savings accounts and CDs could see an increase.

Fed’s hawkish outlook focuses on inflation

Fed experts expect the FOMC to hold rates steady in October for three reasons:

Policymakers want more time to assess stubborn inflation.

Rising Treasury yields have already tightened financial conditions.

The cooling labor market argues against raising borrowing costs too quickly.

Plus, monetary policy alone will not offset rising energy prices from the Iran War, especially if the United States decides to escalate threats to resume military action. 

WEBs ETFs CEO Ben Fulton told TheStreet in an exclusive email that the Fed will want time to further assess the impact of the September rate increase and the ever-changing energy and fuel prices driving inflation.

“Wait and see also keeps the Fed out of the political crosshairs that an increase the week before the midterm elections would incite,’’ Fulton said. “We are a long way from the 2% target inflation rate, yet the Fed is showing a firm grip on the economic levers it can deploy.’’ 

Related: Fed’s Waller does ‘about-face’ on interest-rate outlook as inflation surges

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Why we love this deal

While enjoying your backyard space can be relaxing, it can be difficult to feel fully relaxed if you don’t quite have your items in order. Whether you need to make some room for lawn tools, need to find a place for kids’ toys, or want to keep your gardening supplies safe and out of the elements, a walk-in storage shed can make all the difference. Sheds offer enough room to store large sports items, lawn care, and other accessories and tools to allow you to keep a tidy back porch while still being able to have what you need. 

The Asofer Outdoor Storage Shed is a convenient option that offers enough space for your bicycle, lawn mower, or wheelbarrow without taking up too much of your yard. Originally $170, this shed is on sale for just $135 plus shipping right now at Walmart.

Asofer Outdoor Storage Shed, $135 (was $170) at Walmart

Courtesy of Walmart

Shop at Walmart

Why do shoppers love it?

The rust-resistant galvanized steel structure helps protect your items from rain, snow, sun, and wind, while also featuring vents to prevent humidity buildup that prevents your tools from growing mold and mildew. The sloped roof allows rain to flow right off, while the eaves shed rainwater without dripping it down the sides of the shed. The 78-inch peak height offers plenty of room for larger items like rakes or shelving for tools, and the 45-inch-wide double doors allow easy access to your larger items. The whole shed measures 74 inches across and 48 inches deep, providing a full walk-in option. This shed is a great addition for the garden, side yard, or back patio, and can even fit two-person patio sets to keep them safe in the winter or during the rainy season. 

Related: Amazon has a bestselling metal storage shed with lockable doors for only $110

The shed does not include flooring, so it’s best placed on your deck or a cement slab, but it can also just work on the grass or dirt if needed. The lockable doors keep your items safe while you’re not around, and can prevent wind from blowing the doors open during storms. The shed also features plastic corner protection shells that keep you and your shed safe from accidents. The laser-cut components fit together easily, but reviewers have stated it’s way quicker with two people to assemble, and the set includes everything needed, including two pairs of gloves for safety. 

The pros and cons of an outdoor shed

Pros

Material: The galvanized steel is rust-resistant and keeps your items safe from the elements.

Size: While the shed footprint is smaller, it still offers ample room for larger items like lawn mowers, small bistro sets, and more. 

Cons 

Colors: This shed is only available dark gray and brown. 

It doesn’t include flooring: It’s best used on an existing cement slab or patio, but can also be placed on grass or dirt if needed. 

“It’s perfect for outdoor storage,” one reviewer said. “After a few storms so far, it is still completely waterproof.”

Another shopper said, “This is the third one I have bought, and they all still do what I need them to do. They work great, are weatherproof, and hold up well in the sun.”

Shop more deals

Impact Outdoor Canvas Storage Tent, $102 (was $189) at Walmart

BaPiPro Outdoor Storage Shed, $95 at Walmart

The Asofer Outdoor Storage Shed is a solid choice for outdoor storage, whether you want to store seasonal items, toys, sports items, and more. It has enough room to walk in to find what you need, and it can fit other storage shelves inside. The rust-proof outer keeps your items safe and dry, and the doors can lock for extra protection. Walmart has this on sale for 21% off, plus shipping.