Starbucks to close about 250 coffee shops in North America — CNBC

Starbucks plans to close about 250 coffee shops in North America — approximately 1% of its locations in the region. The decision is part of the company’s business transformation program, CNBC reports.

Closures by the end of the fiscal year

Starbucks has more than 18,000 locations in North America. Most of the planned closures are expected to take place by the end of the company’s 2026 fiscal year, which ends later this month.

This is the second round of coffee shop closures in North America during the two-year tenure of CEO Brian Niccol. Under his leadership, Starbucks is reviewing its U.S. business operations, focusing in particular on improving the customer experience and personal interaction with visitors at its coffee shops.

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Review of expansion plans

The company has also lowered its forecast for net location growth in fiscal 2026: Starbucks now expects a net increase of 440 coffee shops instead of the previously projected 600–650. These new locations are expected to open in international markets.

In a regulatory filing, Starbucks said it continues to see significant long-term growth opportunities in North America and is developing its pipeline of planned coffee shops.

Restructuring costs

The company expects approximately $300 million in restructuring costs related to the closures. About $200 million will be allocated to early lease terminations and severance payments to employees. Another $100 million will consist of non-cash expenses from write-offs and impairment of company-owned restaurant assets.