Starbucks to Shutter 250 North American Stores This Week in 2nd Wave

Starbucks is preparing to shut 250 stores across North America later this week.

The closures mark the second major round of cuts since Brian Niccol became Starbucks chairman and CEO in 2024. In September, the coffee chain closed 627 locations in North America and Europe and eliminated 900 non-retail positions.

Chief Operating Officer Mike Grams told employees that the affected stores either are not producing satisfactory financial results or cannot deliver the customer and employee experience Starbucks expects.

Starbucks did not identify the stores slated for closure Thursday, disclose how many are in the United States or say how many have union representation. More than 700 U.S. locations have voted to unionize since late 2021, though Starbucks opposes the effort and the company has not yet reached a labor agreement with the union.

Meanwhile, Starbucks is continuing to remodel North American stores with the goal of creating warmer, more welcoming spaces. The company expects to complete upgrades at 1,500 locations by Sept. 30, the final day of its fiscal year.

“This progress has given us a clearer view of the performance of every coffeehouse,” Grams wrote. “While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you.”

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Despite the planned closures, Grams said Starbucks remains committed to expanding its North American store network.

Employees affected by the shutdowns will be moved to other stores when possible. Those who cannot be placed elsewhere will receive severance support, Starbucks said.

The company also cut 300 corporate jobs in May and closed several underused offices in the United States.

Starbucks shares were up less than 1% in premarket trading Thursday.