The Starbucks logo is seen in a store in Houston on September 25, 2025. Ronaldo Schemidt | AFP | Getty ImagesStarbucks announced Thursday that it will close about 1% of its cafes in North America as part of its shift. Under CEO Brian Niccol, Starbucks has undertaken a revamp of its U.S. business that has focused on improving the customer experience, including in-person interactions in its coffee shops. The announcement marks the second round of closures in North America during Niccol’s two-year tenure. Starbucks expects to close about 250 underperforming coffee shops out of its more than 18,000 locations in North America. “We have carefully reviewed our North American coffee portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we do not see a path to acceptable financial performance,” Mike Grams, Starbucks’ chief operating officer, wrote in a letter to employees. For fiscal 2026, Starbucks now projects net new openings of 440 coffee shops, up from its previous outlook of 600 to 650 locations. These new coffees will come from their international markets. “The company continues to see significant long-term growth opportunities in North America and is actively developing a strong portfolio of new coffees,” the company said in a regulatory filing. Most of the closures will occur before the end of fiscal year 2026, according to the document. Starbucks’ fiscal year ends at the end of this month. The company expects to incur about $300 million in restructuring charges related to the closures. About $200 million of that charge will be related to the costs of ending leases early and paying employee separation benefits. The remaining $100 million will be non-cash charges for the disposition and impairment of company-owned restaurant assets. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
