Full Breakdown
Starbucks Announces Closure of About 250 North American Stores
By Drooid · · How we work
Core Event: Nationwide Store Closures Under “Back to Starbucks” Strategy
Starbucks will shutter roughly 250 coffeehouses across North America—about 1 % of its more than 18,000 locations—by the end of its 2026 fiscal year. Closures are occurring in states such as Wisconsin, Rhode Island, Washington, California, Pennsylvania, South Carolina, Texas and Florida.
Background & Context
The closures are part of the “Back to Starbucks” turnaround plan introduced by CEO Brian Niccol in 2024, which aims to refocus stores on a “cozy, community-oriented” experience after declining same-store sales. In 2025 the chain eliminated 627 stores worldwide and cut 900 non-retail jobs.
Data & Statistics
- Stores closing: ~250 (?1 % of North American coffeehouses).
- Financial impact: About $300 million in restructuring charges, with $200 million for lease-exit costs and employee separation benefits.
- New openings & upgrades: 60 new stores opened in fiscal year 2026; ~1,500 locations are slated for renovations.
- Unionized sites: At least one closing store in San Diego County is unionized; 20 union-affiliated stores are among the 250 closures.
Timeline
- September 24: Starbucks releases a public letter announcing the closures and selection criteria.
- Late September 2026: Stores begin posting closure notices; many shut doors over the weekend of September 24-25.
- September 26: In Los Angeles County, 20 locations are identified as having no operating hours beyond this date.
- End of FY 2026: All 250 closures are expected to be completed.
Official Statements & Responses
Affected employees will be offered transfer opportunities where possible, with severance support for those who cannot be redeployed.
Verbatim Quotes
- “We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” — Mike Grams, CEO
- “Closing any coffeehouse is a difficult decision, and we know today's news will be hard for the partners, customers and communities affected,” — Mike Grams, CEO
On-the-Ground Reports
Residents in Warwick, Rhode Island, expressed surprise that a store opened just a year earlier would close. In Madison, Wisconsin, signage warned customers of the imminent shutdown, and in Seattle, Washington, three stores are slated for closure after internal reviews flagged underperformance.
Conflicting Reports & Gaps
Starbucks has not released a comprehensive public list of the 250 locations, so third-party tracking sites and local news investigations are being used to identify specific stores. The exact number of union-affiliated closures remains unclear.
What’s Next
The company plans to finish all closures by the end of FY 2026 while rolling out new openings and remodels. Restructuring charges will be absorbed within its 2026 financial results, and Starbucks will continue to evaluate its portfolio as market conditions evolve.