Full Breakdown
Starbucks to Close 250 North American Stores in Turnaround Push
By Drooid · · How we work
Core Event
On September 24, Starbucks announced it will close about 250 underperforming coffeehouses in the United States and Canada, roughly 1 % of its more than 18,000 North American locations. The company said most closures will be completed before the end of fiscal 2026, its fiscal year that ends later this month.
Background & Context
The closures constitute the second round of store reductions under CEO Brian Niccol, who began his two-year tenure in September 2024. Niccol’s “Back to Starbucks” plan focuses on shorter wait times, simpler menus, extensive store upgrades, and cost-cutting measures such as corporate role reductions. Earlier in the year the chain reported four straight quarters of comparable-sales growth and higher customer traffic across all income cohorts.
Official Statements & Responses
Chief operating officer Mike Grams wrote to employees, — a statement that frames the closures as necessary to maintain the brand’s experience standards and financial health. Starbucks said it will offer transfers where possible and severance when no other position is available. The firm also revised its fiscal-2026 outlook, projecting net new openings of about 440 stores, down from an earlier target of 600-650, with most new locations expected from international markets.
Data & Statistics
- Closures: ~250 stores (~1 % of ~18,000 North American sites).
- Restructuring charges: about $300 million total, including roughly $200 million for early-lease exits and employee separation benefits and $100 million in non-cash asset impairments.
- Net new openings forecast for fiscal 2026: 440 stores, versus a prior outlook of 600-650.
- Timeline: most closures to be finished by the end of fiscal 2026.
What’s Next
Starbucks plans to resume expanding its U.S. footprint, targeting roughly 400 net new company-operated stores by fiscal 2028 and a longer-term goal of adding at least 5,000 U.S. locations. The company will continue to monitor store performance and adjust its portfolio as part of the ongoing turnaround.