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Starbucks announces 250 store closures

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September 24, 2026

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Starbucks is closing 250 underperforming U.S. stores this week, even as its North American business returns to growth, according to an article in the New York Times. The locations represent roughly 1% of its 18,000 U.S. stores, and each fell short of financial or customer-experience expectations, COO Mike Grams said in a letter to company employees, according to PBS News. The closures will result in approximately $300 million in restructuring charges related to leases and employee benefits.

As of press time Starbucks, had not returned request for comment.

The move is part of CEO Brian Niccol's turnaround strategy, which has included additional staffing, technology upgrades and efforts to restore the traditional coffeehouse experience. Starbucks reported an 8.1% year-over-year increase in North American comparable-store sales for the quarter ended June 28, but those investments have pressured profits. The company is targeting $2 billion in annual cost reductions by 2028.

Starbucks has not disclosed which stores will close, how many are in the U.S. or how many are unionized. More than 700 U.S. locations have voted to unionize since 2021, but the company and union have yet to reach a labor agreement.

The latest closures follow the shutdown of more than 600 underperforming stores a year ago.