Key takeaways
- Starbucks will close about 250 North American coffeehouses.
- The closures will cost the company about $300 million.
- Starbucks expects roughly 440 new global locations in fiscal 2026.
Starbucks will close about 250 North American coffeehouses this week in the latest wave of Starbucks store closures as CEO Brian Niccol continues a turnaround plan aimed at improving store performance and reshaping the company’s footprint.
Starbucks targets underperforming coffeehouses
The closures represent about 1% of Starbucks’ more than 18,000 coffeehouses across North America. The company said the affected locations either do not provide the customer and employee experience it expects or lack a clear path to acceptable financial performance.
Starbucks has not released a full list of stores that will close. Customers are expected to see closure notices beginning this weekend, and the affected locations will be removed from the company’s mobile app, according to the company.
Chief Operating Officer Mike Grams said the company reviewed its North American store portfolio before making the decision. “We have carefully reviewed our North America coffeehouse portfolio,” Grams wrote in a Sept. 24 letter to employees.
The company said workers at affected locations will be offered transfers to other coffeehouses when possible. Employees who cannot be placed elsewhere will receive severance support, Starbucks said.
Closures add to costly turnaround
Starbucks expects the latest closures to produce about $300 million in restructuring charges. About $200 million of that amount is expected to be cash costs, primarily tied to lease-exit expenses and employee separation benefits, while the remainder is expected to come from asset disposal and impairment charges.
The latest Starbucks store closures follow a larger restructuring push under Niccol, who became Starbucks CEO in September 2024. The company closed hundreds of underperforming locations last year and also reduced corporate positions as part of its broader “Back to Starbucks” strategy.
Starbucks is also scaling back its store-opening expectations. The company now expects about 440 net new company-operated and licensed coffeehouses globally in fiscal 2026, down from its previous projection of 600 to 650.
“The closures are a sensible but costly step in Starbucks’ turnaround,” said Lale Akoner, global market strategist at eToro, according to Reuters. She said the company’s next challenge is sustaining improvement in sales and margins.
Starbucks points to sales growth
The latest Starbucks store closures come as Starbucks reports improving sales performance. The company recorded four consecutive quarters of comparable sales growth, according to its July earnings release, with global and U.S. comparable sales both increasing 7.9% in the third quarter of fiscal 2026.
Niccol said the third quarter marked a point when the company’s progress became “truly measurable.” He said Starbucks had more work ahead but remained focused on improving customer service and the in-store experience.
Starbucks said it is continuing to invest in its remaining coffeehouses, including a plan to complete 1,500 store “uplifts.” Grams said the company remains committed to expanding in North America despite the latest closures.
“We remain excited about the significant long-term growth opportunity ahead in North America,” Grams wrote. The company said it is developing a pipeline of new coffeehouses while directing resources toward stores with stronger performance potential.
