Starbucks Plans 250 North American Store Closures

Starbucks plans to close about 250 underperforming North American stores—roughly 1% of its regional footprint—in the second major round of closures under CEO Brian Niccol’s “Back to Starbucks” turnaround strategy. The closures are expected to affect around 900 employees; Starbucks will offer transfers where possible and severance to employees who cannot be placed elsewhere. The company expects about $300 million in restructuring charges, including lease-exit costs, employee separation benefits and store-asset write-downs, and has not disclosed which locations will close or how many are in the U.S. or Canada. Starbucks is also accelerating cafe remodels, with a goal of completing at least 1,500 by the end of fiscal 2026, and says it remains committed to North American growth. It lowered its forecast for global net store openings this fiscal year to about 440 from an earlier estimate of 600 to 650.