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Starbucks to Close 250 Stores Amid $1 Billion Restructuring
Starbucks plans to close about 250 stores in North America.
The company says these stores are not performing well enough or cannot provide the experience it wants.
The closures are part of a larger plan called “Back to Starbucks.”
Some workers may be moved to other stores or receive severance pay.
Starbucks expects the closures to cost about $300 million.
The company has also announced layoffs and office closures.
Even so, Starbucks says its North American sales and customer visits have improved.
It is lowering its expected number of new store openings for fiscal 2026.
Starbucks plans to close about 250 North American coffeehouses, roughly 1% of its regional locations.
The closures are part of the company’s “Back to Starbucks” restructuring strategy under CEO Brian Niccol.
Starbucks says the affected stores do not meet expected customer-experience or financial-performance standards.
The company expects approximately $300 million in additional restructuring charges, including lease and employee-separation costs.
Starbucks lowered its fiscal 2026 projected net new cafe openings from 600–650 to 440 locations.
- Who
- Starbucks Corporation, led by Chief Executive Officer Brian Niccol and Chief Operating Officer Mike Grams.
- What
- The company announced plans to close approximately 250 North American coffeehouses as part of its restructuring.
- Where
- Across Starbucks locations in North America, including the United States.
- When
- The closures were announced in September 2026; the article says they would occur later that week.
- Why
- Starbucks said the affected locations did not deliver the expected coffeehouse experience or financial performance and lacked a path to acceptable results.
Key facts
- Stores closing
- Approximately 250 North American coffeehouses
- Share of North American portfolio
- About 1% of more than 18,000 coffeehouses
- Restructuring charges
- Approximately $300 million
- Cash charges
- Approximately $200 million, mostly for lease-exit costs and employee-separation benefits
- Non-cash charges
- Approximately $100 million for disposal and impairment of company-operated coffeehouse assets
- Fiscal 2026 opening forecast
- Lowered from 600–650 net new cafes to 440
- Recent North American same-store sales
- Increased 8.1% in the quarter ending June 28, 2026
- Recent North American traffic
- Increased 4.5% in the quarter ending June 28, 2026
Quotes
Starbucks Corporation
The coffeehouse company, in its September 22, 2026 SEC filing.
“The Company further assessed its existing North America store portfolio and will close approximately 1% of its more than 18,000 North America coffeehouses that do not deliver the coffeehouse experience and financial performance expected of the brand.”
financialexpress.com
“was the quarter our momentum became truly measurable.”
financialexpress.com
Sources
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