The closures represent around 1% of Starbucks’ more than 18,000 stores in the region and follow a previous round of shutdowns in 2025, when the company closed 627 locations in North America and Europe. Starbucks said the latest closures involve stores that are not meeting expected financial results or customer and employee experience standards.
The company has not released the locations affected or confirmed how many of the stores are in the United States. According to the Associated Press, Starbucks said employees at closing locations will be moved to other stores where possible, while those who cannot be relocated will receive severance support.
Starbucks Reviews Store Network as Part of Turnaround Effort
The latest closures are part of Starbucks’ wider effort to adjust its store network and improve operations. Chief Operating Officer Mike Grams told employees that the company’s ongoing renovation programme had provided a clearer picture of individual coffeehouse performance.
Starbucks is continuing to retrofit its North American coffeehouses to make them more comfortable and inviting. The company expects 1,500 stores to have received upgrades by 30 September, the end of its financial year.
“While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you,” Grams wrote in his letter to employees.
According to Reuters, the closures will result in around $300 million in restructuring charges. This includes $200 million in cash costs linked to lease exits and employee separation benefits, as well as $100 million in non-cash charges related to coffeehouse assets. Starbucks said it remains committed to expanding its store presence in North America. At the end of June, the company had 18,371 stores in the region.
Store Closures Come Amid Changes to Operations and Workforce
The store reductions follow other changes at Starbucks as the company seeks to manage costs and improve performance. The company previously reduced its corporate workforce, including 900 non-retail employees after last year’s closures and another 300 corporate roles in May.
The planned closures have also drawn attention from Starbucks Workers United, the union representing employees at company-owned US stores that have voted to unionise. According to the union, 20 unionised stores are among the 250 locations being closed, representing 8% of the total closures. Starbucks stores have been voting to unionise since late 2021, though the company and the union have not reached a labour agreement.
According to Reuters, Starbucks has reported four consecutive quarters of comparable sales growth as of July. The company has also been working on operational changes, including shorter wait times and simpler menus in the United States as part of its “Back to Starbucks” plan.
The company said most of the closures will be completed by the end of its 2026 financial year. Starbucks shares fell less than 1% during afternoon trading on Thursday following the announcement.
