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Starbucks to Close 250 North American Stores

Executives say the closures are meant to remove underperforming locations, slow near‑term U.S. expansion, and trigger about $300 million in restructuring charges.

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Overview

  • Starbucks announced on Thursday that it will close roughly 250 coffeehouses in North America, about 1% of its regional footprint, with most shutdowns expected to finish by the end of fiscal 2026.
  • The company said the stores were identified in a portfolio review as unable to deliver the customer or partner experience or reach acceptable financial performance.
  • Starbucks expects about $300 million in restructuring charges tied to the closures, with roughly $200 million tied to lease exits and employee separation costs.
  • About 900 roles will be affected and the company plans to offer transfers to nearby stores when possible and severance for those who cannot be relocated, but it did not disclose which specific locations will close or how many are unionized.
  • The move is the second major round of cuts under CEO Brian Niccol’s ‘Back to Starbucks’ turnaround and comes as the company trims its fiscal‑2026 net new openings forecast to roughly 440 and completes widespread store renovations.