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Starbucks to Close 250 North American Stores Amid Sales Recovery

The coffee chain is shrinking its footprint by about 1% while comparable-store sales rise, citing locations that cannot deliver the intended experience or financial returns.

Sources: Open Magazine, TheStreet, Inside Retail Asia3 sources ↓|· 1 min read
Starbucks to Close 250 North American Stores Amid Sales Recovery
Photo: TheStreet

KEY POINTS

  • Starbucks will close ~250 North American stores (~1% of footprint) announced Sept 24.
  • US comparable-store sales rose 7.9% in Q ended June 28, 2026, with transactions up 4.2%.
  • Latest closures expected to cost ~$300M in restructuring charges ($200M cash, $100M non-cash).
  • Starbucks Workers United says 20 unionized stores are closing; union seeks bargaining.
  • Follows FY25 restructuring that closed 627 stores at ~$1B cost; global strategy shifts in China and India.

Starbucks announced on September 24 it will close roughly 250 coffeehouses in North America, representing about 1% of its more than 18,000 locations in the region. Chief Operating Officer Mike Grams said the affected stores either could not consistently deliver the intended customer and employee experience or lacked a path to acceptable financial performance.

The closures come even as US comparable-store sales rose 7.9% in the quarter ended June 28, 2026, driven by a 4.2% increase in transactions and a 3.6% rise in average spending per visit. Starbucks explained that comparable-store sales measure an established group of outlets, allowing overall performance to improve while weaker locations are shut.

“Every year we close some coffeehouses and open others as part of managing our portfolio.”

— Mike Grams, Starbucks Chief Operating Officer

The company expects approximately $300 million in restructuring charges from this round, including about $200 million in cash costs for lease exits and employee separation benefits, plus $100 million in non-cash asset charges. Affected workers will be offered transfers where possible, with severance for those who cannot be placed elsewhere.

This follows a broader FY25 restructuring that closed 627 stores, over 90% in North America, at a cost of about $1 billion. Starbucks Workers United said 20 of the roughly 700 unionized US stores are among those closing and has requested information and bargaining for affected locations.

Globally, Starbucks is also changing its operating model in China and developing its business in India as part of its broader strategic shift.

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