Starbucks has officially confirmed plans to close 250 underperforming coffeehouses across North America. The decision represents approximately 1% of the company’s 18,000 regional locations. Affected cafes will begin shuttering operations immediately with most transitions expected to wrap up shortly.
Inside the strategy: Prioritizing profitability and experience
In a memo to employees, Chief Operating Officer Mike Grams explained that the targeted units were unable to meet financial targets or deliver the elevated coffeehouse experience the brand demands.
The move forms part of CEO Brian Niccol’s broader turnaround plan aimed at simplifying operations, improving customer wait times and modernizing existing stores to make them cozier destinations.
While Starbucks has not released an official master list of closing addresses, updated hours inside the mobile app indicate shutters span major metropolitan areas across the U.S. and Canada. The company expects the restructuring process to generate roughly $300 million in associated charges.
What happens next for local staff and customers
Starbucks emphasized that this localized contraction does not mean a total retreat from growth. The coffee giant still plans to add hundreds of net new corporate and licensed stores over the coming fiscal year while aggressively retrofitting existing spaces.
Affected employees will be offered transfer opportunities to nearby active stores where possible, with severance packages offered to eligible partners if relocation is not feasible.
Customers are encouraged to check the official Starbucks app to confirm operating hours for their nearest location.
