Why is Starbucks closing 250 stores? Inside Brian Niccol’s turnaround strategy
Starbucks is closing 250 underperforming stores as Brian Niccol pushes his turnaround plan, cuts costs and focuses on sales, customers and profit margins.
Starbucks plans to close 250 underperforming coffeehouses across North America as part of CEO Brian Niccol's turnaround strategy. The closures represent about 1% of the coffee giant's roughly 18,000 stores in the region. Niccol aims to focus resources on high-performing stores and locations to improve sales and efficiency. The move is expected to result in around $300 million in restructuring charges for the company.
Starbucks had previously closed several underperforming stores a year ago, with the earlier restructuring estimated to cost the company $1 billion. The new strategy, dubbed "Back to Starbucks," involves reducing customer wait times, simplifying menus, and improving store operations. Starbucks expects to open about 440 net new company-operated and licensed coffeehouses globally in fiscal 2026, down from an earlier target of 600 to 650 stores.
The company is also cutting corporate positions and closing regional offices to reduce expenses. Despite the closures, Starbucks has reported four consecutive quarters of comparable-sales growth, indicating a potential rebound in customer demand. However, the restructuring costs will hurt the company's finances in the short term.
Niccol's strategy aims to create a stronger and more efficient Starbucks business, with the ultimate goal of translating sales improvement into better profitability and margins.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
