Starbucks Closes 250 Stores in Second Round of Cuts

Starbucks is closing about 250 underperforming North American stores this week, its second round in a year, taking $300 million in charges.

Starbucks announced on Thursday, Sept. 24 that it will close approximately 250 coffeehouses across North America by the end of this week, according to a public letter from Chief Operating Officer Mike Grams. The company did not specify which locations will close or give a precise closure date, saying only that the stores will shut 'later this week.' The closures represent about 1% of Starbucks' more than 18,000 North American coffeehouses. It is the second big round of store closures under Chairman and CEO Brian Niccol, who joined in 2024 — last September the chain closed 627 stores in North America and Europe.

The move signals that Niccol's 'Back to Starbucks' turnaround — free refills, the return of the condiment bar, an improved code of conduct and a simplified menu — has not lifted every store. Grams wrote that while most locations are thriving under the strategy, some continue to underperform 'despite the hard work and commitment of all of you,' and that the company wants every coffeehouse to be 'a place customers love, and partners are proud to work.' The financial cost is substantial: about $300 million in restructuring charges, including $200 million in cash charges for lease exits and employee separation benefits and $100 million in non-cash charges from asset disposal and impairment.

Employees at affected stores will be offered transfers to other locations where possible, with severance support for those who cannot be placed, though the chain did not detail the severance package. Starbucks Workers United, the union representing Starbucks employees, told USA TODAY that 20 unionized coffeeshops will be impacted and that it is sending a formal request for information about the planned closures. 'We expect to engage in effects bargaining for every impacted union store, as we have done elsewhere, so workers can be placed in another Starbucks store according to their preferences,' the union said, adding that the closures show 'why baristas need the backing of a union.'

Even as it closes stores, Starbucks says it expects about 1,500 North American locations to be retrofitted into more inviting spaces by September 30, the end of its fiscal year. Grams said the renovation program has given the company 'a clearer view of the performance of every coffeehouse,' helping identify which stores cannot deliver the experience customers and employees deserve. The company also said it expects to continue growing its store count in the region even as underperforming locations shut. Corporate ranks have been trimmed too: 900 nonretail employees were laid off last September, and USA Today's reporting via the AP notes another 300 corporate employees were cut in May alongside some underused U.S. office closures.

Local impact remains unclear because Starbucks has not released a list of the closing locations. Patch notes Virginia is among the top 10 states for Starbucks locations, with about 508 stores per ScrapeHero, and that no notices have yet been published by Virginia's workforce department. According to The News-Press, Florida has 946 Starbucks locations, the third most of any U.S. state. The closures land mid-fall menu season, with the Pumpkin Spice Latte lineup back since Aug.