Starbucks to shut about 250 North American cafés in latest restructuring
Starbucks will close roughly 250 underperforming locations in North America, representing about 1% of its regional portfolio, and will reduce its planned new openings for fiscal 2026.
Starbucks announced on Thursday that it will close approximately 250 cafés in North America, about 1% of its more than 18,000 locations in the region. The closures are part of a broader turnaround plan under CEO Brian Niccol, who has been reshaping the U.S. business to enhance the in-store experience.
Mike Grams, the company’s chief operating officer, wrote to employees that the company had "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."
In its latest fiscal outlook, Starbucks now expects to open 440 new cafés in fiscal 2026, down from a previous forecast of 600 to 650, with most of the new stores coming from international markets. The firm said it continues to see long-term growth opportunities in North America and is developing a pipeline of new coffeehouses.
The company anticipates the majority of the closures will be completed before the end of fiscal 2026, and it expects to incur roughly $300 million in restructuring costs, including about $200 million for early lease exits and employee separation benefits and $100 million in non-cash asset impairments.