Starbucks Cuts 250 North American Cafes in Turnaround Push
Starbucks plans to close roughly 250 cafes in the U.S. and Canada after concluding they could not consistently meet its customer-experience or financial goals. The company expects about $300 million in restructuring charges, mostly cash costs for lease exits and employee severance, with the remainder from asset write-downs. The move is part of its turnaround plan, which also includes more staffing and cafe redesigns, and Starbucks still expects to expand its North American footprint over the longer term.
Starbucks will close about 250 U.S. and Canadian cafes, just over 1% of its more than 18,000 locations there. It expects roughly $300 million in restructuring charges: about $200 million cash for lease exits and severance, plus $100 million in noncash asset write-downs. Most closures should finish by fiscal 2026.
The closures cut expected net new North American stores this fiscal year to about 440, from 600–650 previously. They are part of CEO Brian Niccol’s “Back to Starbucks” plan, which also includes over $500 million in added staffing and scheduling investments and cafe redesigns. More than 1,000 sites have been updated, with at least 1,500 “uplifts” targeted by fiscal 2026.
The closures could affect workers at the roughly 250 sites, who may face layoffs or reassignment, and customers who may need to travel farther for Starbucks. Nearby businesses could lose some foot traffic. At the same time, investment in remaining cafes may improve service and seating for many customers. The net social effect may depend on how quickly affected employees find new work and whether communities retain comparable gathering spaces.