Starbucks Closing Stores as 250 North American Locations Shut

Starbucks plans to close about 250 coffeehouses across North America later this week, adding another round of store closures as the company reviews the performance of its locations. The decision comes two years after Brian Niccol became chairman and CEO and began pushing the company’s Back to Starbucks strategy.

The company has not said which coffeehouses will close or provided a breakdown for the U.S. and Canada. Starbucks also has not disclosed how many of the affected locations are unionized. The latest move is the second major closure round under Niccol, following the 627 stores that Starbucks closed across North America and Europe last September. The company is now facing another wave of Starbucks closing stores.

Why Starbucks Is Closing More Locations

Mike Grams, Starbucks’ chief operating officer, said the company reviewed its North American coffeehouse portfolio and found some locations were not delivering the experience it wanted for customers and employees. Others did not have a clear path to acceptable financial performance.

The 250 locations represent about 1% of Starbucks’ more than 18,000 coffeehouses in North America. The company says it still sees room to expand its store network and is continuing to develop new locations.

Starbucks is also working on existing stores. The company expects to complete upgrades at 1,500 North American coffeehouses by September 30. The changes are part of its wider effort to make stores warmer and more inviting while improving service.

Employees to Receive Transfer Support

Workers at the closing locations will be offered transfers to other Starbucks stores where possible. The company said employees who cannot be placed elsewhere will receive severance support.

The latest closures come after Starbucks announced 300 additional corporate job cuts in May and closed some underused U.S. offices. Last year’s closure round also included 900 non-retail job cuts.

Starbucks has not released a complete list of locations affected by the latest Starbucks store closures. The company said customers whose regular stores are affected will be directed to nearby coffeehouses.

For the company's full announcement, see Starbucks' official statement on the 250 closures.

 FAQs

1. How many Starbucks stores are closing?
Starbucks plans to close approximately 250 coffeehouses across North America.

2. Why is Starbucks closing these stores?
The company says some locations are not meeting its expectations for customer and employee experience, while others do not have a path to acceptable financial performance.

3. Has Starbucks released the list of closing stores?
No. The company has not yet disclosed the specific locations included in this round.

4. Are Starbucks stores closing in Canada?
The closures cover North America, including Canada and the U.S., but Starbucks has not disclosed how many Canadian locations are affected.

5. What will happen to Starbucks employees at closing locations?
Starbucks says it will offer transfers to other stores where possible. Employees who cannot be transferred will receive severance support.