Starbucks to Close Around 250 Stores Across North America This Week in $300M Shake-Up

Starbucks is preparing to shut approximately 250 coffeehouses across North America, adding another major round of closures to CEO Brian Niccol's ongoing turnaround plan. The move comes months after the coffee giant cut 300 US corporate jobs and closed several regional offices as it sought to streamline its business.

The affected locations are expected to close later this week, although Starbucks has not publicly identified the stores. The closures represent about 1% of Starbucks' more than 18,000 North American locations.

Starbucks Targets Underperforming Cafés

In a 24 September letter to employees, Chief Operating Officer Mike Grams said the company had reviewed its North American coffeehouse portfolio. Starbucks said it identified locations where it could not consistently deliver the experience it wanted or where it did not see a path to acceptable financial performance.

'This progress has given us a clearer view of the performance of every coffeehouse,' Grams wrote. 'While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you.'

Starbucks said employees at affected locations will be offered transfers to other stores where possible. Those who cannot be placed elsewhere will receive severance support.

Second Major Store Closure Round Under Brian Niccol

The latest closures mark the second significant round under Brian Niccol, who became Starbucks chairman and CEO in September 2024. In September 2025, Starbucks announced a major restructuring that resulted in 627 store closures, more than 90% of them in North America. The company also eliminated approximately 900 non-retail roles. Starbucks later cut another 300 corporate employees in May 2026 and said it would consolidate or close some US regional support offices.

The latest move comes as Starbucks has reported stronger comparable-store sales. For its fiscal third quarter ended 28 June, US comparable-store sales rose 7.9%, while North American comparable-store sales increased 8.1%. Starbucks said North American comparable transactions climbed 4.5%, while the average ticket increased 3.5%.

$300M Price Tag for Closures

The latest restructuring will not come cheaply. According to Starbucks' regulatory filing, the company expects approximately $300M in restructuring charges connected to the closures. About $200M will be cash charges, primarily related to lease-exit costs and employee separation benefits.

Another $100M will be non-cash charges tied to the disposal and impairment of company-operated coffeehouse assets. Starbucks expects most of the closures to be completed by the end of its 2026 fiscal year.

Store Makeovers Continue Despite Closures

At the same time, Starbucks is continuing to invest in coffeehouses across North America. The company said it is accelerating work to complete 1,500 coffeehouse 'uplifts' by the end of the fiscal year. The renovations are designed to create warmer, more inviting spaces, with Starbucks highlighting softer seating, artwork, greenery, and local design touches.

Grams insisted that the latest closures do not signal an end to Starbucks' expansion plans. 'We remain excited about the significant long-term growth opportunity ahead in North America,' he wrote, adding that Starbucks is 'actively developing a strong pipeline of new coffeehouses and remains committed to growth.'

Still, the company has reduced its store-opening expectations for the current fiscal year. Starbucks now expects to open approximately 440 net new company-operated and licensed coffeehouses worldwide during fiscal 2026, down from its previous forecast of 600 to 650.