Starbucks announced plans to shutter approximately 250 cafes across North America, representing roughly 1% of its regional portfolio. The closures are part of a broader operational restructuring initiated under Chief Executive Officer Brian Niccol, whose two-year tenure has emphasized improvements to the customer experience and in-person interactions at company locations.
The company identified the affected locations through a comprehensive review of its North American portfolio, selecting sites where management believes it cannot consistently deliver its desired customer and employee experience or achieve acceptable financial performance. Mike Grams, the company’s chief operating officer, communicated the decision to staff members, explaining the rationale behind the selections. The specific locations targeted for closure were not immediately disclosed.
The restructuring will impact the company’s growth projections for the current fiscal year. Starbucks reduced its net new opening guidance to 440 locations from a prior forecast of 600 to 650 cafes, with the new locations concentrated in international markets rather than North America. The company has indicated that most closures will occur before the end of fiscal 2026.
Starbucks expects to incur approximately $300 million in restructuring charges stemming from the closures. Of this amount, roughly $200 million will cover lease exit costs and employee separation benefits, while the remaining $100 million represents noncash charges from asset disposal and impairment. Despite the near-term consolidation, the company maintains it sees significant long-term growth prospects in North America and is developing a pipeline of new locations for future expansion.
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