Starbucks Closes 250 North American Stores in Turnaround Push
Starbucks is closing 250 underperforming North American cafes and cutting corporate staff as part of CEO Brian Niccol's strategy to revive the brand's coffeehouse experience.
Starbucks Coffee Company is closing approximately 250 underperforming cafes across the United States and Canada as part of its "Back to Starbucks" turnaround strategy. The closures, which represent about 1% of the company's 18,000 North American locations, target sites that failed to meet financial performance standards or consistently deliver the desired customer experience. The company expects to incur $300 million in restructuring charges, including $200 million for lease exits and severance.
Led by CEO Brian Niccol, the restructuring includes laying off over 200 corporate staff in technology and design, with some reports indicating up to 900 global corporate positions were eliminated. To offset the closures, the company is investing $1 billion to remodel up to 9,000 locations, with 1,500 "uplifts" to be completed by the end of fiscal 2026. This physical makeover is paired with the Green Apron Service program to improve barista-customer interactions.
Specific closures have been confirmed in various regions, including 37 stores in Canada—with significant cuts in Ontario and Quebec—and numerous sites across the U.S., including Washington, Texas, and California. Starbucks Workers United reported that 20 unionized stores are among those closing. While the company offered transfer opportunities or severance, some employees reported receiving as little as one to three days' notice before their locations shut down.
Despite the downsizing, the company reported momentum in fiscal Q3, with North American comparable sales rising 8.1%. Starbucks has lowered its fiscal 2026 net new store opening forecast to 440, shifting its growth focus toward international markets.
