Starbucks to Close 250 North American Stores, Incur $300 Million in Restructuring Costs
Starbucks announced plans to close approximately 250 underperforming coffee shops in North America as part of a restructuring initiative under CEO Brian Niccol. The company expects to incur about $300 million in restructuring charges, including $200 million in cash expenditures. Despite the closures, Starbucks forecasts a net addition of roughly 440 new coffee shops globally during its 2026 fiscal year. The move follows a broader review of thousands of stores and previous closures, with the company focusing short-term expansion outside North America.
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Starbucks to close 250 underperforming North American stores in second round of closures under CEO Niccol
Starbucks announced plans to close approximately 250 underperforming coffee shops in North America this week, marking the second round of store closures within a year under CEO Brian Niccol, who joined the company in September 2024. The closures are part of a broader operational restructuring aimed at improving profitability and efficiency. The company expects to incur about $300 million in restructuring charges related to these closures. Niccol has set a target to cut $2 billion in costs by the end of fiscal 2028. Starbucks COO Mike Grams stated in an internal memo that despite employee efforts, some stores continue to underperform. The company will attempt to relocate baristas from closed stores and offer severance to those who choose to leave. Starbucks has been reviewing thousands of stores across the U.S. and has already closed hundreds that failed to meet profit and customer experience standards. As of the end of June, Starbucks operated 11,149 directly owned stores in North America, down about 300 from a year earlier. The company plans to focus short-term store expansion outside North America and is developing smaller store formats to compete with rapidly growing tea chains like BROS. Additionally, Niccol has been cutting headquarters staff, including approximately 2,000 layoffs and hundreds of unfilled positions, with further reductions announced in August. Starbucks also closed regional offices in Chicago, Atlanta, Dallas, and Burbank, California, and announced a new technology office in Chennai, India.
Read sourceStarbucks to close 250 underperforming North American stores as CEO Brian Niccol pushes restructuring
Starbucks announced in a regulatory filing that it will close 250 underperforming coffee shops in North America. The move is part of an intensified business restructuring effort led by CEO Brian Niccol, who is seeking to boost the company's sales. The closures target underperforming locations in the region, reflecting the company's strategy to streamline operations and improve financial performance. The announcement was made through a formal regulatory filing, indicating a significant operational shift under Niccol's leadership.
Read sourceStarbucks to close hundreds of North American cafes this week under CEO Brian Niccol
Starbucks plans to close hundreds of cafes across North America this week, according to a post from the Wall Street Journal. The move is the latest under Chief Executive Brian Niccol, who is seeking to streamline operations and boost the profitability of the coffee chain. The closures represent a significant operational shift for the company, which has thousands of locations across the continent. The announcement follows a series of changes implemented by Niccol since he took the helm, aimed at improving efficiency and financial performance. The specific locations and timeline for the closures were not detailed in the post, but the action is described as a key part of Niccol's strategy to revitalize the brand and cut costs.
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Starbucks to Close 250 North American Stores, Incur $300 Million in Restructuring Costs
Starbucks (SBUX.O) has announced plans to close 250 stores in North America as part of a restructuring initiative. The company expects to incur approximately $300 million in total restructuring charges, which includes $200 million in cash expenditures. Despite the closures, Starbucks forecasts a net addition of about 440 new coffee shops globally during its 2026 fiscal year. The announcement, reported by tradealpha, outlines the coffee chain's strategic shift to optimize its store portfolio while continuing expansion in other markets.
Read sourceStarbucks to Close About 1% of Its Coffee Stores in North America
According to a report from Cailianshe on September 24, Starbucks has announced that it will close approximately 1% of its coffee stores in North America. The announcement indicates a strategic adjustment to the company's retail footprint in the region. The specific locations and timeline for the closures have not been detailed in the report. This move comes as the coffee giant continues to evaluate its store portfolio and operational efficiency in its home market.
Read sourceStarbucks to Close 250 North American Stores, Incur $300 Million in Restructuring Costs
Starbucks (SBUX.O) announced plans to close 250 stores in North America as part of a restructuring initiative. The company expects to incur approximately $300 million in total restructuring charges, which includes $200 million in cash expenditures. Despite the closures, Starbucks forecasts a net addition of about 440 new coffee shops globally during its 2026 fiscal year. The announcement reflects the company's ongoing efforts to optimize its store portfolio and streamline operations, balancing closures with targeted expansion in other markets.