Starbucks store closures: List of doomed locations includes another 250 coffeehouses, 1 year after earlier cull

Starbucks Coffee Company has announced plans to close around 250 North American stores, which make up about 1% of its more than 18,000 coffee shops across the continent. The closures come after a review of its North American portfolio, aimed at ensuring the company can provide the desired customer experience and achieve acceptable financial performance.

Starbucks COO Mike Grams stated that the decision was made to support the Back to Starbucks strategy. Employees affected by the closures will receive transfer opportunities where possible, and severance support for those who cannot be transferred. This move is part of a broader restructuring of Starbucks' North American footprint.

Notably, this follows a similar restructuring in September 2023, where Starbucks cut 900 corporate roles and reduced its store footprint by around 1%, ending the year with approximately 18,300 locations. Since 2021, nearly 700 U.S. Starbucks locations have voted to unionize. CEO Brian Niccol's 'Back to Starbucks' turnaround strategy, announced on his second day in the role in September 2024, aims to improve the customer experience and make cafes more welcoming.

In the past two years, Starbucks has redesigned 1,500 of its cafes and simplified its menu to boost order-delivery speed. The company now anticipates around 440 net new coffee shop openings globally this fiscal year, down from its previous target of 600 to 650 openings. Starbucks expects most of the closures to be completed by the end of fiscal year 2026, incurring approximately $300 million in restructuring charges, with about $200 million related to lease exit costs and employee separation benefits.

Starbucks shares were essentially unchanged at market open on Thursday, having risen roughly 12% year to date.