Starbucks to Close 250 North American Cafes, Take $300 Million Charge

Starbucks will shutter roughly 250 underperforming North American cafes and absorb about $300 million in restructuring charges as CEO Brian Niccol's turnaround enters its second round of store closures.

The closures represent about 1% of the company's more than 18,000 locations across North America, Starbucks announced Thursday. Most of the affected stores will close before the end of fiscal 2026, according to a regulatory filing. Starbucks' fiscal year ends later this month.

This marks the second round of North American closures in Niccol's two-year tenure. Since taking the top job, Niccol has staged a revamp of the U.S. business centered on improving the customer experience, including in-person interactions at the coffee chain's cafes.

Mike Grams, Starbucks' chief operating officer, explained the decision in a letter to employees. "We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don't see a path to acceptable financial performance," Grams wrote.

Scaled-back expansion

The closures come with a sharply reduced growth forecast. For fiscal 2026, Starbucks now projects 440 net new cafe openings, down from its prior outlook of 600 to 650 locations. All of those new cafes will come from its international markets, not North America.

The company signaled the pullback in North America does not signal a retreat from the region over the long haul. "The Company continues to see significant longer-term growth opportunity ahead in North America and is actively developing a strong pipeline of new coffeehouses," Starbucks said in the regulatory filing.

Breaking down the charge

The restructuring carries a price tag of about $300 million. Roughly $200 million of that covers the cost of exiting leases early and paying separation benefits to employees at closing locations.

The remaining $100 million consists of non-cash charges tied to the disposal and impairment of company-owned restaurant assets.

The move tests whether a leaner North American footprint can support the experience-focused strategy Niccol has championed, even as the chain leans on international markets for near-term growth.