Starbucks plans to close 250 underperforming coffeehouses across North America as CEO Brian Niccol intensifies efforts to revive sales and strengthen the company’s business. According to a regulatory filing on Thursday, the closures will result in approximately $300 million in restructuring charges. The company expects to complete most of the shutdowns by the end of fiscal 2026, with the affected locations representing around 1% of its roughly 18,000 North American stores.
The latest move comes a year after Starbucks undertook a major restructuring that included shutting down several underperforming outlets. Under Niccol’s “Back to Starbucks” strategy, the company has focused on reducing customer wait times, simplifying menus and improving store and kitchen operations. Starbucks has also cut corporate jobs and closed some regional offices to manage costs. Additionally, it has lowered its fiscal 2026 global net new store opening target to approximately 440, down from its earlier projection of 600 to 650.
Despite the restructuring, Starbucks has reported four consecutive quarters of comparable sales growth as of July 2026, with customer traffic improving across income groups. However, the company continues to face pressure from elevated living costs and changing consumer spending patterns, particularly among lower-income customers. Market strategists have noted that sustaining sales growth while improving profit margins will be crucial to the success of Niccol’s turnaround strategy.
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