Starbucks plans to close approximately 250 stores across North America, marking a significant restructuring effort under CEO Brian Niccol, with affected employees offered transfers or severance support.
Starbucks has announced plans to close around 250 coffeehouses throughout North America, a move that represents the company’s second major round of closures since Brian Niccol took over as CEO in 2024. The closures are part of a strategic review of Starbucks’ North American coffeehouse portfolio.
In a letter to employees, Chief Operating Officer Mike Grams stated that some of the locations were not meeting acceptable financial performance, while others were unable to consistently deliver the customer and employee experience that Starbucks aims to provide. The closures account for approximately 1% of Starbucks’ more than 18,000 coffeehouses in North America.
While Starbucks did not specify how many of the affected locations are in the United States or provide a comprehensive list of the stores set to close, the announcement follows a previous round of closures in September 2025, when the company shut down 627 stores across North America and Europe and eliminated around 900 non-retail positions. This earlier decision was part of the broader “Back to Starbucks” strategy aimed at revitalizing the brand.
As part of this ongoing strategy, Starbucks has been working to modernize its coffeehouses. Grams noted that the company anticipates completing 1,500 coffeehouse “uplifts” by September 30, marking the end of its fiscal year. This initiative has provided Starbucks with better insights into the performance of individual coffeehouses.
Despite the closures, Starbucks remains committed to expanding its North American store count. However, the company is also taking steps to close locations that do not align with its financial and customer-experience standards.
Although a complete official list of the closing stores has not been released, local news outlet 13WTHR has published a list of confirmed locations. Some of the notable closures include stores in Alabama, Arizona, California, Colorado, Connecticut, Florida, Kentucky, Maryland, Michigan, Missouri, Nebraska, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Rhode Island, Tennessee, Texas, Virginia, Washington, D.C., and Canada.
For employees affected by the closures, Starbucks has indicated that it will attempt to transfer workers to other locations whenever feasible. Those who cannot be relocated will receive severance support from the company. Starbucks has not disclosed how many of the stores set to close have unionized workers. Since late 2021, over 700 U.S. Starbucks stores have voted to unionize, but the company and Starbucks Workers United have yet to finalize a labor agreement.
This latest round of closures highlights the ongoing challenges faced by Starbucks as it navigates the evolving retail landscape and seeks to enhance its operational efficiency while maintaining customer satisfaction.
According to 13WTHR, the list of confirmed closures will be updated as more locations are finalized.