Starbucks Closes 250 Outlets in Big N. America Overhaul

Key Moments

Starbucks will close about 250 underperforming locations across the U.S. and Canada this week, representing roughly 1% of its 18,000 North American stores.
The closures are part of CEO Brian Niccol’s broader turnaround strategy, focused on improving store performance, service, and marketing.
Despite the rationalization, the company is planning renewed expansion, targeting about 400 net new company-operated U.S. stores in fiscal 2028 and at least 5,000 additional U.S. stores over the longer term.

Strategic Store Closures in North America

Investing.com — Starbucks will shut down about 250 stores across the United States and Canada this week as it continues to recalibrate its North American store base. The company is concentrating on locations that it considers underperforming and with “no path to acceptable financial performance,” while reallocating resources toward stores with stronger sales prospects.

The upcoming closures make up approximately 1% of Starbucks’ roughly 18,000 locations in the region. This action follows a separate wave of closures that was announced last September, underscoring an ongoing effort to streamline operations and enhance profitability across its network.

Focus on Profitability and Operational Turnaround

The rationalization of the store portfolio is a core element of CEO Brian Niccol’s turnaround plan. That strategy has encompassed store enhancements, efforts to speed and improve service, new marketing initiatives, and changes to the menu. According to the report, sales at established stores exceeded expectations in the most recent quarter, and analysts are anticipating continued momentum.

Employee Impact and Transition Measures

Starbucks is aiming to reduce disruption for its workforce as it winds down these locations. The company plans to offer transfers to employees at affected stores where opportunities exist, and to provide severance for workers who cannot be reassigned. These details were outlined in a message to employees from Chief Operating Officer Mike Grams, as cited by Bloomberg.

Planned Expansion and Long-Term Growth Targets

Even as it trims underperforming outlets, Starbucks is signaling plans for future growth in its U.S. store base. The company has stated that it intends to resume expansion of its U.S. footprint, with a goal of adding about 400 net new company-operated stores in fiscal 2028.

Looking further ahead, Starbucks has also indicated that it sees potential to add at least 5,000 additional stores in the U.S. over the longer term, highlighting its confidence in the domestic market despite the near-term consolidation.

Store Footprint Overview

Metric	Detail
Current North American stores (approx.)	18,000
Stores closing this week	About 250
Share of regional footprint closing	About 1%
Planned net new U.S. company-operated stores in fiscal 2028	About 400
Potential additional U.S. stores over the longer term	At least 5,000