Starbucks to close 250 more cafes in North America

Starbucks is set to close an additional 250 cafes across North America as part of its strategy to enhance financial performance, the company announced on Thursday. CEO Brian Niccol, who took over in September 2024, revealed that these closures are targeted at underperforming locations to improve the overall experience for customers and partners.

COO Mike Grams explained that the decision was based on locations where Starbucks could not consistently deliver the desired experience or where financial viability was questionable. This move represents one percent of Starbucks' 18,000 North American cafes. The closures come a year after the company announced the closure of hundreds of other North American stores and the elimination of 900 administrative positions.

Niccol, formerly the CEO of Chipotle, has been focused on revitalizing Starbucks' performance in its home market following a period of sluggish growth. Starbucks had initially planned to open between 600 and 650 stores globally this year, but in a recent filing, the company indicated it would open around 440 shops in fiscal 2026. The company's share price fell by 1.2% in early afternoon trading on Thursday.