Consumer News: Starbucks plans to close 250 North American stores

The closures follow decades of explosive growth

By Mark Huffman of ConsumerAffairs

• Starbucks plans to close about 250 coffeehouses in North America, with most closures expected by the end of its fiscal year.

• The company expects the move to cost approximately $300 million and has reduced its forecast for new store openings worldwide.

• Affected employees will be offered transfers where possible; those who cannot be placed will receive severance support.

Starbucks said it plans to close approximately 250 coffeehouses across North America as it continues to reshape its store network under its Back to Starbucks turnaround strategy. The company has not released a list of the affected locations.

Chief Operating Officer Mike Grams told employees Thursday that the company identified stores where it could not consistently deliver the experience it wants for customers and workers, or where it saw no path to acceptable financial performance. He said the closures would begin later this week.

A regulatory filing says most of the closures are expected to be completed by the end of Starbucks 2026 fiscal year. The 250 locations represent a small share of its more than 18,000 North American coffeehouses, but the loss of a neighborhood store may be significant for customers who visit it regularly. Starbucks said it will direct those customers to nearby locations.

The company expects approximately $300 million in restructuring charges tied to the closures. About $200 million will be cash costs, primarily for ending leases and employee separation benefits. The remaining $100 million will be non-cash charges related to store assets, according to the filing.

Starbucks also lowered its forecast for net new stores worldwide this fiscal year to about 440, down from its previous estimate of 600 to 650. That figure accounts for stores opened and closed. The company said additional openings in international markets will partly offset the North American closures. Starbucks earlier forecast was issued in July.

What happens to employees?

Starbucks said it is speaking directly with workers at affected stores and will offer transfers where possible. Those who cannot be placed in another coffeehouse will receive severance support. The company has not said how many employees will be affected.

This is another round of closures under the turnaround plan. In September 2025, Starbucks announced it would close stores that fell short of its goals for the customer experience or financial performance. That announcement also included the elimination of approximately 900 non-retail jobs.

The latest closures come amid stronger sales at established stores. North American comparable store sales rose 8.1% in the quarter that ended June 28, Starbucks recently reported. Grams said the company is continuing to develop new coffeehouses and sees room for long-term growth in North America.