Starbucks to Close 250 North American Stores This Week in Latest Turnaround Move
Starbucks announced Thursday that it will close approximately 250 stores across the United States and Canada by the end of this week, targeting locations that the coffee giant says are either financially underperforming or unable to provide the customer experience it wants. The closures amount to roughly 1% of Starbucks’ more than 18,000 North American locations.
Chief Operating Officer Mike Grams announced the move in a letter to Starbucks employees, whom the company refers to as “partners,” saying the decision followed a detailed examination of the chain’s North American portfolio.
“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” Grams said.
“As a result, we will close approximately 250 coffeehouses later this week. This represents approximately 1% of our more than 18,000 North America coffeehouses,” he added.
Starbucks has not released a complete list of the locations that will be shuttered, and it was not immediately clear how many of the affected stores are in the United States versus Canada.
The announcement represents the second major round of North American store closings under CEO Brian Niccol, who has been carrying out an extensive turnaround effort known as “Back to Starbucks.” Last year, the company closed hundreds of underperforming stores as part of a restructuring that also included the elimination of approximately 900 non-retail positions.
Grams stressed that the latest closures come even as Starbucks says its overall North American business is improving. The company has been renovating stores, adjusting operations and attempting to restore the coffeehouse atmosphere that executives believe was diluted as the chain increasingly emphasized mobile orders and takeout business.
The company has already remodeled more than 1,000 stores in the United States and Canada since late 2025, adding softer seating, artwork, greenery and other features designed to encourage customers to spend more time inside its cafés. Starbucks says it is now accelerating toward completing 1,500 such store “uplifts.”
The company’s most recent quarterly results showed signs that the strategy has gained traction. Starbucks reported that U.S. comparable-store sales rose 7.9% during its fiscal third quarter, with transactions increasing 4.2%. The company had 16,933 U.S. stores at the end of the quarter, down 2% from a year earlier.
Despite those improvements, Grams said some individual stores have continued to struggle even as the broader business recovered, leading management to conclude that they should be closed.
“Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected,” Grams said.
Starbucks said employees at the affected stores are being contacted directly. The company plans to offer transfers to other nearby Starbucks locations whenever possible, while employees who cannot be placed elsewhere will receive severance assistance. Customers at stores being closed will also be directed to nearby locations.
The company emphasized that the closures do not represent a retreat from North America. Starbucks says it continues to develop new stores and sees significant long-term opportunities for expansion, with the chain simultaneously opening new locations while removing stores that management believes no longer make financial or operational sense.
“We’re making this decision for a simple reason: we want every Starbucks coffeehouse to be a place customers love and partners are proud to work,” Grams said.
The announcement also comes shortly after Starbucks reached a $1 million settlement with Florida over a lawsuit challenging the company’s diversity, equity and inclusion-related employment practices. Under the agreement described by Florida officials, Starbucks agreed to comply with state civil-rights requirements regarding race- and sex-based employment practices. The settlement is separate from the company’s decision to close the 250 stores.
Starbucks’ latest round of closures underscores the two-track strategy Niccol has pursued since taking over the company: spending heavily to improve stores that executives believe have strong potential while moving more aggressively to close locations that fail to meet the chain’s financial or customer-experience standards. The company says that despite this week’s closures, its broader plan remains focused on expanding its North American business.
