Starbucks to close 250 North American stores in $300 million restructuring

What This is

• Starbucks says it will close about 250 underperforming North American cafes, about 1% of its more than 18,000 locations.
• Starbucks says the closures will happen later this week, but it has not released a store-by-store list or specific closure dates.
• The company says the targeted stores either are not financially viable or cannot consistently deliver the customer and employee experience Starbucks wants.
• Starbucks expects about $300 million in restructuring charges, including lease exit costs, employee separation benefits, and asset impairments.
• The closures are part of CEO Brian Niccol’s broader turnaround, which also includes store renovations and upgrades at about 1,500 locations.
• Starbucks also reduced its expected pace of new store openings, lowering its fiscal 2026 forecast for net new openings to about 440.
• The closures mark the second major round of cuts under Niccol, following earlier store closures and corporate layoffs.

Why This Matters

• Closures can disrupt hourly workers’ income, schedules, and commutes, even when transfers or severance are offered.
• The move signals that Starbucks is prioritizing fewer, better-performing stores over rapid expansion.
• Up-front costs for leases and employee separation can reduce profits before any longer-term savings are realized.
• Failing to disclose specific locations in advance leaves workers, customers, and nearby businesses uncertain and unable to plan.