Starbucks said on September 24, 2026, that it will close about 250 coffeehouses across North America. The announcement is the second round of closures in North America during CEO Brian Niccol’s two-year tenure.[1] The number sounds big, but it’s small next to the size of the chain.
The company’s explanation is practical. Some stores don’t meet its standards for customer experience, and others don’t look financially viable. This article covers what Starbucks has said, what it costs, and how the closures fit into a wider turnaround.
What Starbucks Actually Announced
Starbucks said it is closing approximately 250 locations in the coming days as it continues to prune its store count during its turnaround.[2] The closures amount to 1% of a North American footprint of roughly 18,000 locations.[2] Chief Operating Officer Mike Grams announced the news in a letter to employees.
Different outlets measure the cuts against different bases. Daily Coffee News notes that the closures represent about 2.2% of Starbucks’ 11,149 company-operated North American locations.[3] Both figures can be right. The 1% figure counts the whole North American network, while the 2.2% figure counts only company-run stores.
The Two Reasons Starbucks Gave
Grams offered a two-part rationale. He said the company had identified locations where it does not believe it can consistently deliver the experience it wants for customers and partners, or where it sees no path to acceptable financial performance.[4] In other words, a store can be closed for being unprofitable, for failing to deliver on service, or both.
Grams also framed the closures as routine portfolio management. He said Starbucks closes some locations and opens new ones every year.[5] That fits the company’s insistence that it isn’t retreating from North America. Still, this is the second large round in about a year, so it reads as more than routine.
What the Closures Will Cost
Closing stores isn’t free, and Starbucks has said so directly. In its filing with the US Securities and Exchange Commission, Starbucks said the closures will be completed by the end of fiscal year 2026, with approximately $300 million of restructuring charges to be incurred.[4] Those charges are a cost the company is accepting up front.
The charges split into two kinds. About $200 million is cash, tied to exiting leases and paying employee separation benefits. The other $100 million is non-cash, from disposing of and impairing coffeehouse assets.[6] Lease exits are a large part of the bill, which is a reminder of how long retail commitments can run.
A Second Round Under Brian Niccol
This isn’t the first time Niccol has cut the store base. In September 2025, the company closed 627 locations across North America and Europe as part of a broader restructuring effort and eliminated approximately 900 non-retail positions.[6] That round was part of a restructuring plan the company put at $1 billion.
The cuts have also reached the corporate side. In May 2026, Starbucks laid off an additional 300 corporate employees and closed some U.S. offices.[6] The 250 stores now being closed are one more piece of a multi-step reset. Starbucks has said the previous North American closures were substantially completed in fiscal 2025.
The Back to Starbucks Turnaround
The closures sit inside a strategy Starbucks calls “Back to Starbucks.” In North America, Niccol has unveiled café renovations, improved service and a simplified menu.[2] The company says the aim is to rebuild the in-store experience rather than simply shrink. Niccol has described the goal as reclaiming the third place and becoming the world’s greatest customer service company.[7]
There are signs the strategy is working. The company’s proxy statement says it returned to positive global comparable store sales in the fourth quarter of fiscal year 2025, for the first time in seven quarters.[8] In the third quarter of fiscal 2026, GAAP earnings per share of $0.91 increased 86% over the prior year.[7] Investors remain cautious, though. One analysis points to multiple analyst downgrades over the last 90 days and a double-digit percentage slide in the share price over the past month.[9]
Fewer New Stores, More Remodels
The closures come with a change in how Starbucks spends its money. The company now expects about 440 net new company-operated and licensed coffeehouses in fiscal 2026, down from a previous forecast of 600 to 650.[10] Starbucks says it still plans to grow. It is just giving more weight to the role and performance of each location.
Part of that money is going into the stores it keeps. Starbucks expects 1,500 retrofits to be completed by September 30.[11] The redesigned stores are meant to be warmer, more comfortable places where customers want to stay longer and connect.[6] Put simply, the company is closing weaker stores while upgrading others.
What It Means for Employees and Unions
Store closures hit the people who work in them first. Starbucks said it will transfer employees to other stores where possible, or provide severance support if relocation isn’t an option.[12] Grams acknowledged that closing any coffeehouse is a difficult decision, and that the news will be hard for the partners, customers and communities affected.[4]
Labor relations add another layer. According to the baristas’ union, Starbucks Workers United, 20 of the 250 closing stores are unionized.[5] Meanwhile, more than 700 U.S. Starbucks locations have voted to unionize since late 2021, and the company and union have not reached a labor agreement.[12] Starbucks has not tied the closures to union activity. It says the decisions rest on performance and experience.
Which Stores Are Closing and What Customers Will See
Starbucks hasn’t published a full list. Customers will start seeing signs on affected cafés this weekend, and the closures will be reflected in the app.[2] Local reports are filling in some gaps. In the Philadelphia area, Starbucks is closing two Philadelphia stores and another in South Jersey.[5]
For most customers, the chain’s size means a nearby store will still be open. Some neighborhoods will lose a location, though, and the store locator is the most reliable place to check. Starbucks also says it is actively developing a strong pipeline of new coffeehouses and remains committed to growth in North America.[4]
