Starbucks announced Thursday it will close approximately 250 North American coffeehouses later this week. The closures target locations that consistently underperform or fail to deliver the desired customer experience. This action represents about 1% of the company's regional footprint. Starbucks currently operates more than 18,000 stores in North America.
The move is part of the Back to Starbucks strategy to improve performance and service. COO Mike Grams stated that recent progress provided a clearer view of individual store performance. Affected employees will receive transfer opportunities or severance packages.
Starbucks has already completed over 1,000 store uplifts. The company aims to reach 1,500 total uplifts by the end of fiscal 2026. Starbucks shares fell nearly 1% in premarket trading following the news.