Starbucks is closing around 250 stores across North America this week as the coffee chain continues restructuring its business.
The closures represent around 1 per cent of Starbucks’ more than 18,000 locations across North America and come after the company reviewed the performance of its stores.
Chief Operating Officer Mike Grams said the company identified locations where it could not consistently deliver the experience it wanted for customers and employees, or where it did not see a path towards “acceptable financial performance”.
The company has not revealed which locations will close or how many will be in the US and Canada.
This is the second major round of closures under CEO Brian Niccol, who joined Starbucks in 2024.
In September 2025, the company announced plans that ultimately resulted in 627 store closures across North America and Europe, while also cutting around 900 non-retail roles.
Starbucks said employees affected by the latest closures will be offered transfers to other locations where possible.
Those who cannot be moved to another store will receive severance support.
The latest changes are part of the company’s “Back to Starbucks” strategy, which has focused on improving the experience inside its coffeehouses and speeding up service.
At the same time, Starbucks is continuing to renovate existing locations, with the company working towards completing upgrades at 1,500 coffeehouses by the end of its fiscal year.
Starbucks expects to incur around $300 million in restructuring charges related to the closures, including around $200 million in costs primarily linked to ending leases and employee separation benefits.
Despite the closures, Starbucks said it remains committed to expanding in North America and is continuing to develop new coffeehouses.
Despite the closures, Starbucks still plans to grow its global footprint, with around 440 new store openings expected this year.
Source: Khaleej Times