For many coffee drinkers, a favorite local coffeehouse is more than just a place to grab a morning drink. It’s part of a daily routine, a convenient meeting spot or a place to work, relax, and catch up with friends.
That experience is about to disappear for some customers as one of the world’s largest coffee chains prepares to close hundreds of locations across North America.
The closures could mean longer trips and fewer convenient options for people who rely on these stores, while also making another major step in the company’s effort to reshape its business and improve its performance.
Founded in 1971 in Seattle, Washington, Starbucks (SBUX) is one of the world’s largest coffeehouse chains and roasters, with thousands of stores globally. Its green logo and coffeehouse atmosphere have made the brand a recognizable presence in communities globally.
Starbucks is closing 250 stores in North America
Starbucks plans to close 250 stores in North America later this week after a review of its coffeehouse network, according to a company letter.
The company said it carefully reviewed its North America coffeehouse portfolio and identified locations where it could not consistently deliver the experience it wants for customers and employees or where it did not see a path to acceptable financial performance.
The closures represent about 1% of Starbucks’ more than 18,000 North American coffeehouses.
While the exact coffeehouses slated for closure have yet to be revealed, Starbucks said it will offer affected employees roles at other stores when possible or provide severance to those unable to secure another position within the company.
Starbucks Workers United said on September 24 that it is sending a formal request for information to Starbucks about the planned closures and will engage in bargaining at every unionized store affected by the shutdowns. The union said 20 of the approximately 700 company-owned U.S. Starbucks stores that have voted to unionize are among those closing.
“Every year we close some coffeehouses and open others as part of managing our portfolio,” said Starbucks COO Mike Grams in the letter.
“We are actively developing a strong pipeline of new coffeehouses and remain committed to growth in North America.”
Why Starbucks is closing stores
The closures are part of Starbucks’ broader “Back to Starbucks” strategy, which is designed to strengthen the company’s brand identity, simplify operations, and improve customer experience.
According to the company, its priorities include:
- Modernizing beverages and food
- Simplifying the menu to reduce friction and improve speed
- Enhancing store design and operational efficiency
- Prioritizing coffee quality
- Empowering baristas
One of the goals of the strategy is to encourage customers to spend more time in Starbucks coffeehouses, with the company seeking to improve traffic and increase in-store purchases.
Starbucks has also been investing heavily in its existing stores. The company said it has now completed more than 1,000 coffeehouse uplifts across the U.S. and Canada and is accelerating its pace toward completing at least 1,500 by the end of fiscal 2026. The redesigned stores are intended to create a warmer, more comfortable environment where customers want to stay longer and connect.
Green Apron Service has also become Starbucks’ defining operating standard as the company works to improve service times and the customer experience.
The company said it will incur $300 million in restructuring charges from this round of closures, including $200 million in cash charges as it exits leases and pays employee separation benefits, and $100 million in non-cash charges from the disposal and impairment of coffeehouse assets, according to its latest SEC filing.
Previous Starbucks closures
The latest closures follow another round of shutdowns as Starbucks continues to reshape its store network.
In September 2025, the company closed 627 locations across North America and Europe as part of a broader restructuring effort and eliminated approximately 900 non-retail positions.
In May 2026, Starbucks also laid off an additional 300 corporate employees and closed some U.S. offices.
Starbucks sees improvement
The moves come after a period of weaker performance and a significant restructuring effort, but Starbucks is now reporting signs of improvement.
During the third quarter of fiscal 2026, the company reported:
- Global comparable store sales: Increased 7.9% year over year
- Global comparable transactions: Rose 4.2%
- Global average ticket: Climbed 3.5%
- North America comparable store sales: Increased 8.1%
- North America comparable store transactions: Rose 4.5%
- North America average ticket: Climbed 3.5%
Despite the closures, Starbucks continues to expand its overall store fleet. The company opened 175 net new coffeehouses during the quarter, ending the period with 41,304 locations.
However, its North America store count declined 2% to 18,371.
Starbucks had previously planned to open approximately 600 to 650 net new coffeehouses globally during fiscal 2026. The company has since lowered that expectation to about 440 net new stores, according to its latest SEC filing.
The change highlights the different directions Starbucks is taking with its store network: closing locations that no longer meet the company’s expectations while continuing to invest in stores it believes have stronger potential.
Here’s some of my previous coverage on more Starbucks news:
- Starbucks launches 4 new fall items after Pumpkin Spice Latte debut
- Starbucks makes some surprising additions to its fall menu
- Starbucks brings back two viral drinks not seen in nearly a decade
“We have more work to do, but we’re relentlessly focused on reclaiming the third place and becoming the world’s greatest customer service company,” said Starbucks CEO Brian Niccol in the company’s earnings report.
