Starbucks Corp. confirmed on Thursday that it plans to close roughly 250 locations in North America as part of its ongoing corporate restructuring. The move represents the second wave of store closures under CEO Brian Niccol’s two-year tenure, which has prioritized revitalizing the U.S. business and enhancing the in-store customer experience.
The coffee giant operates more than 18,000 cafes across the region, meaning the planned closures account for approximately 1% of its North American footprint. According to regulatory filings, the majority of these shutdowns are expected to be completed before the conclusion of the company’s fiscal year, which ends later this month.
Financially, Starbucks anticipates recording approximately $300 million in restructuring charges associated with the exits. About $200 million of this figure covers early lease termination costs and employee separation benefits, while the remaining $100 million consists of non-cash charges related to the impairment and disposal of company-owned assets.
In addition to the closures, the company lowered its net new opening guidance for fiscal 2026. Starbucks now projects 440 new cafes, a significant decrease from its previous outlook of 600 to 650 locations. The firm noted that these future openings will primarily stem from international markets.
Despite the收缩 in North America, the company maintained a positive long-term outlook in its filing. “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 stated.
Closing stores while cutting new openings is a tough sell. Are they really investing enough in the customer experience they claim to prioritize?
Seems like a lot of noise for just one percent of their locations. If they’re still confident in long-term growth, why the panic?
Three hundred million in restructuring charges? That’s steep. I wonder how many jobs are actually lost versus just relocated.