Starbucks to close another 250 coffeehouses in North America
The closures come a year after Starbucks shut down several underperforming stores in the region.
Starbucks plans to close 250 underperforming coffeehouses across North America, according to a recent regulatory filing. This move is part of CEO Brian Niccol's efforts to revitalize sales for the company. The closures are a year after Starbucks had already shut down several underperforming stores in the region, including its historic Seattle roastery, as part of a restructuring effort that cost the company approximately US$1 billion.
The additional closures will result in about US$300 million in restructuring charges, accounting for roughly one percent of Starbucks' approximately 18,000 stores in North America. The company aims to complete most of these closures by the end of fiscal year 2026. Starbucks anticipates that global net new store openings for company-operated and licensed coffeehouses will be around 440 in fiscal 2026, a decrease from its previous target of 600 to 650 openings.
Niccol, who completed two years as CEO of Starbucks in September, has been implementing strategies such as shorter wait times, simplified menus, and cost-cutting measures to attract customers. The company reported four consecutive quarters of comparable sales growth as of July, with customer traffic increasing across all income groups.
Starbucks has also refreshed its loyalty program and added items like protein cold foam to boost sales. Despite the broader slowdown in non-essential spending, Starbucks' high-margin products like lattes have managed to withstand the economic challenges, especially among lower-income consumers in the United States who are struggling with rising costs of fuel and food.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
