Starbucks is preparing to shut down approximately 250 underperforming cafes across North America as part of an ongoing effort to revitalize its domestic business. This move represents roughly one percent of the company’s total footprint in the region and comes as the brand attempts to pivot back toward a more intimate, high quality customer experience. Under the leadership of CEO Brian Niccol, who has spent the last two years revamping how the chain operates, these closures mark the second wave of strategic exits designed to trim inefficiency from the portfolio.
Chief Operating Officer Mike Grams explained in a memo to staff that the decision followed a rigorous review of their current locations. He noted that some stores simply could not consistently provide the level of service expected by both customers and employees, while others lacked a viable path toward sustainable financial performance. By removing these struggling sites, leadership hopes to focus resources on locations that better align with their long term vision for the coffeehouse experience.
This shift in strategy also impacts the company’s expansion plans for fiscal 2026. Starbucks has lowered its projected number of new openings to 440 cafes, down from previous targets of up to 650. While North American growth remains a priority over time, most of those upcoming additions will take place in international markets rather than domestically.
The financial cost of this reorganization is estimated at around 300 million dollars in restructuring charges. A significant portion of that sum consists of lease exit fees and employee separation packages totaling 200 million dollars, with another 100 million earmarked for non cash asset impairments. Most of these shutters are expected to be finalized before the end of fiscal 2026 as the company streamlines its operations for future growth.