Starbucks to Close 250 North American Locations in Turnaround Effort

Chief Operating Officer Mike Grams confirmed the move in a letter to staff, citing locations where the company can no longer maintain desired service standards or achieve sustainable financial health. This restructuring carries a $300 million price tag, with $200 million earmarked for lease terminations and employee separation benefits. The remaining $100 million covers non-cash charges related to asset impairment and disposal.

The strategic shift also forces a contraction in expansion plans. Starbucks has slashed its fiscal 2026 forecast for net new cafe openings to 440, down from an earlier projection of up to 650. While North American growth remains a stated goal, the firm is prioritizing its international pipeline to offset the domestic footprint reduction. Most of the planned closures will conclude before the end of fiscal 2026.