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Earthquake in the Coffee World: Veteran Brand to Shut 250 Locations This Week

Starbucks will close about 250 North American coffeehouses this week after reviewing stores for customer experience and financial performance

Starbucks in New York. Photo: Xackery Irving / Shutterstock.com Starbucks in New York. Photo: Xackery Irving / Shutterstock.com

Starbucks is set to close approximately 250 coffeehouses across North America later this week as the company continues its effort to reshape its store network under its “Back to Starbucks” strategy.

The closures represent about 1% of Starbucks’ more than 18,000 coffeehouses in North America, according to a message sent to employees by Chief Operating Officer Mike Grams today, September 24.

Reasons Behind the Decision

Starbucks. Photo: photosounds / Shutterstock.comStarbucks. Photo: photosounds / Shutterstock.com

Starbucks said it reviewed its North American coffeehouse portfolio and identified locations where it does not believe it can consistently provide the experience it wants for customers and employees, or where it does not see a path to acceptable financial performance.

The company did not provide a list of the stores being closed in its announcement.

Back to Growth

The decision comes as Starbucks says its broader North American business has returned to growth. The company has been investing in store renovations, staffing and service improvements as part of the Back to Starbucks plan launched under CEO Brian Niccol.

Starbucks said it is accelerating work toward completing 1,500 coffeehouse “uplifts,” which involve changes to store design and the customer experience. More than 1,000 coffeehouses across the U.S. and Canada had already been redesigned since late 2025, according to a separate company announcement this week.

The company has also introduced Green Apron Service as its operating standard, alongside changes including additional staffing, updated scheduling, ceramic cups and glassware for customers who stay in stores, condiment bars and more access to power outlets.

At the same time, Starbucks says the closures do not represent a retreat from its North American expansion plans.

Grams said the company continues to develop a pipeline of new coffeehouses and remains committed to long-term growth in the region. Starbucks previously outlined plans for thousands of potential new U.S. locations as part of its longer-term growth strategy.

For employees at the affected locations, Starbucks says it will look for transfer opportunities to other coffeehouses wherever possible. Workers who cannot be placed elsewhere will receive severance support, according to the company.

Customers affected by the closures will also be directed toward nearby Starbucks locations.

The latest closures therefore form part of a broader effort to change the company's store portfolio rather than a company-wide withdrawal from North America. Starbucks says it plans to close locations that are not meeting its expectations while continuing to invest in stores it believes can support its next phase of growth.

Tags: United Statesshutdown

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