Why is Starbucks closing 250 stores across North America? Everything to know

Starbucks announced Thursday, September 24, that it will close around 250 underperforming locations across North America, indicating around 1% of its more than 18,000 coffeehouses in the region.

Chief operating officer Mike Grams said in a letter to employees that the affected stores either failed to “deliver the experience we want for customers and partners” or lacked a path to acceptable financial performance.

“Closing any coffeehouses is a difficult decision, and we know today’s news will be hard for the partners and communities affected,” he said.

The company will incur roughly $300 million in restructuring charges, including about $200 million for early lease terminations and employee severance. A full list of closures wasn’t immediately released, but customers will begin seeing signs this weekend, and closures will be reflected in the Starbucks app.

The move is part of CEO Brian Niccol’s ongoing turnaround strategy. Since joining in 2024, he has focused on improving wait times, restoring café seating, simplifying the menu, and upgrading technology.

A year earlier, Starbucks closed more than 600 underperforming stores and cut corporate jobs as part of a $1 billion restructuring effort.

The closure comes just days after Starbucks resolved a Florida DEI lawsuit, agreeing to pay $1 million and eliminate race- and sex-based hiring goals companywide. Nicole is also focusing on $2 billion in annual cost cuts by 2028 as investments pressure profits.