Coffee chain Starbucks is restructuring its European activities. The Amsterdam office closes, resulting in 190 dismissals, and Mexican franchise group Alsea will take over all stores in Belgium, France, Luxembourg and the Netherlands.
Amsterdam regional office also closed
Alsea, which will take over the operations of all 260 coffee stores in the Benelux and France, operates over 3500 catering businesses in Latin America and Spain. In addition to 900 Starbucks stores, the group also manages branches of fast food chains such as Burger King and Domino's. Several coffee stores owned by Starbucks in the Netherlands and France are also sold to Alsea.
The American chain wants to cut costs: in June it had already announced that it would review its franchise system because of disappointing results and especially the United States and China need more attention. Starbucks also gets growing competition from Costa, which was recently acquired by Coca-Cola.
The restructuring also spells the end of Starbucks' office in Amsterdam: that regional office employed 190 people, but only four people can move to the company's roastery in Amsterdam. That factory will remain open and keep eighty jobs. The other functions will be moved to the European head office in London.