Starbucks to shutter 250 stores in North America this week in 2nd wave of closings

Starbucks announced it will be closing 250 stores located in North America this week. This marks the second significant wave of closures under the leadership of CEO Brian Niccol, who has been with the company since 2024. In September of the previous year, Starbucks announced plans to shut down 627 stores across North America and Europe.

In a letter to staff, Starbucks' Chief Operating Officer Mike Grams disclosed that the chosen locations either have not met the financial targets set by the company or are unable to deliver the customer and employee experience Starbucks aims to provide. The company has not disclosed specific locations, or how many of the closures will occur in the United States.

Starbucks Workers United, the union representing workers at the 700 company-owned U.S. Starbucks stores that have voted to unionize, noted that 20 of the unionized stores among the 250 closing constitute 8% of the total. Prior to Niccol's tenure, Starbucks workers had been voting to unionize since late 2021, but negotiations between the union and the company have not yet reached a resolution.

CEO Niccol stated that Starbucks remains committed to renovating its North American coffeehouses to create a more comfortable and welcoming atmosphere for customers. The company anticipates that 1,500 stores will undergo renovations as part of this plan.