Starbucks Plans to Shut About 250 Stores in Latest Closure Round

In an effort to turn around, Starbucks said on September 24 that it will be closing approximately 1% of its locations in North America. Starbucks' US operations have been undergoing a transformation under CEO Brian Niccol. These ongoing transformations emphasise enhancing the customer experience through several means, including face-to-face contact at cafés.

During Niccol's two years in office, there were a total of two rounds of closures throughout the Americas. Approximately 250 of Starbucks' more than 18,000 underperforming outlets in North America will be closed. The exact locations of the closed outlets remain unclear.

Lack of Growth Forced Starbucks to Close Operations: Grams

Starbucks has thoroughly examined its portfolio of coffeehouses in North America, according to a memo sent to staff by COO Mike Grams. Additionally, it has pinpointed areas where it is doubtful it can reliably provide the desired experience to partners and customers. In addition, the company isn't seeing a way to achieve satisfactory financial results. The majority of the closures are expected to take place before the conclusion of fiscal 2026, as stated in the petition.

This month marks the end of Starbucks' fiscal year. Restructuring charges associated with the closures are estimated to cost the corporation approximately $300 million. The early termination of leases and the payment of separation benefits to employees will account for around $200 million of that amount. Disposal and impairment of its company-owned restaurant assets will result in noncash charges of $100 million. According to Grams, the company is still dedicated to expanding its presence in the North American market and is working hard to build a solid pipeline of new coffeehouses.

Future Plans of Starbucks in USA

In fiscal year 2028, Starbucks aims to open 400 net new company-operated stores as part of its efforts to restock its US store expansion pipeline. Partners' locations, such as those in supermarket chains and airports, are not included in the total. According to the corporation, there is potential for at least 5,000 more outlets to open in the US in the future.

By the end of its most recent fiscal year on September 28, 2025, Starbucks had shuttered dozens of stores while opening hundreds more. Hence, resulting in a smaller number of stores in North America compared to the previous year. Workers in stores that are going to close will be given chances to transfer to other places to work if it is possible. Severance packages will be paid to employees who are unable to be transferred, as stated in Grams' message. In the meantime, premarket trading on September 24th saw little change in Starbucks shares. In comparison to the S&P 500's almost 13% gain so far this year, the stock had increased around 12% as of 23 September.