Starbucks plans 250 North American closures

Starbucks announced on September 24 that it plans to close approximately 250 North American coffeehouses later that week, following a review of the locations' customer experience and financial prospects.

Chief Operating Officer Mike Grams said the review identified cafés where Starbucks did not believe it could consistently provide the experience it wants for customers and employees, or find a route to acceptable financial performance. He said some locations continued to underperform even as the broader North American business improved. Grams also said Starbucks was developing new North American coffeehouses and remained committed to growth in the region.

In its September 24 securities filing, the company lowered its forecast for fiscal 2026 global net openings to about 440, from 600 to 650. That forecast includes company-operated and licensed locations. Starbucks said higher net openings in International markets would partly offset the North American closures.

The board approved the actions on September 22. Starbucks expects most of the closures to be completed by the end of fiscal 2026, with a significant portion of the associated charges recognized during that fiscal year.

It estimates restructuring charges of about $300 million. Roughly $200 million would be cash charges, primarily for leaving leases and employee separation benefits. The remaining $100 million would be noncash charges for disposing of, or writing down, assets at company-operated coffeehouses. The estimate therefore includes both transition spending and reductions in the recorded value of café assets.

The latest reported operating picture#

The company's July 29 results provide the most recent quarterly backdrop. For the 13 weeks ended June 28, North American comparable sales rose 8.1% from the year-earlier period. Comparable transactions increased 4.5%, while average ticket rose 3.5%.

Those sales comparisons cover company-operated stores open at least 13 months, excluding foreign-exchange effects and Siren Retail locations. They describe the eligible store base's performance, rather than individual cafés' profitability.

North American operating margin reached 13.6%, compared with 13.3% a year earlier. The region recorded $7.4 billion in revenue and about $1 billion in operating income. Starbucks ended the quarter with 18,371 North American locations, versus 18,734 a year before.

Starbucks attributed the margin increase primarily to higher sales, the absence of prior-year Leadership Experience costs, and lower inflation together with tariff refunds. Restructuring costs, labor investment and product mix partly offset those gains.

Reinvestment inside existing cafés#

A separate September 23 design update described the work Starbucks is doing inside existing cafés. The company said it had completed more than 1,000 café uplifts in the United States and Canada since late 2025. It aims to reach at least 1,500 by fiscal year-end 2026 and increase the pace further in fiscal 2027.

The program began with pilots in Southern California and New York. Starbucks describes the changes as a combination of softer seating, artwork, greenery and details chosen for each neighborhood. At its Capitol Hill coffeehouse in Washington, D.C., for example, the company highlighted reclaimed wood floors, preserved architectural details and locally inspired art.

The physical work accompanies other changes to the café experience. Starbucks said it had brought back ceramic cups and glassware for customers staying in stores, restored condiment bars and expanded access to power outlets alongside its Green Apron Service rollout.

For employees affected by the closures, Grams said Starbucks would offer transfers where possible and severance support when it cannot place someone in another coffeehouse. The company also plans to direct customers to nearby locations.