Starbucks plans to shut 250 underperforming coffeehouses across North America. The move is part of CEO Brian Niccol’s broader plan to turn around Starbucks and improve sales. The company announced the closures in a regulatory filing on Thursday.
The latest closures represent about 1% of Starbucks’ roughly 18,000 stores in North America. Starbucks is targeting coffeehouses that are not performing well. The company wants to focus its resources on stores and locations that can contribute more strongly to its business.
The earlier restructuring was estimated to cost Starbucks around $1 billion, according to Reuters. Starbucks now expects to open about 440 net new company-operated and licensed coffeehouses globally in fiscal 2026. Earlier, the company had targeted between 600 and 650 new stores. He completed two years as Starbucks CEO in September 2026.
Brian Niccol became Starbucks CEO after previously leading Chipotle Mexican Grill, according to Reuters. That restructuring also included the closure of Starbucks’ iconic Seattle roastery. The lower target shows that Starbucks is focusing more on improving its existing business rather than rapidly expanding its store network. His strategy is known as “Back to Starbucks. The plan is aimed at bringing customers back to Starbucks and improving the company’s overall performance. The company is not relying only on closures to fix its business. Starbucks has also invested in store operations and kitchen operations. These changes are intended to improve how stores work and help serve customers more efficiently. Starbucks has taken steps to reduce expenses outside its coffeehouses. It has cut several corporate positions and closed some regional offices. The cost-cutting effort is another part of Niccol’s attempt to improve the company’s financial performance.
The company had already closed several underperforming stores in North America about a year earlier.
Starbucks expects to complete most of the 250 store closures by the end of fiscal year 2026. The company expects the shutdowns to result in around $300 million in restructuring charges. This means Starbucks will have to spend heavily in the short term to make changes it believes will improve the business over time.
