Starbucks to Close 250 Stores Across North America

Starbucks will shut down 250 of its locations across North America due to poor performance, according to a Thursday announcement from the coffee chain’s chief operating (COO) officer, as it continues its restructuring.

In a letter, Starbucks COO Mike Grams noted that most of the company’s 18,000 stores were profitable, while a small percentage of locations were not.

“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” Grams said in the statement.

The company announcement did not specify which coffeehouses will be shut down, nor did it provide a breakdown of how many are located in the United States, Canada, or Mexico.

The 250 locations will now be shut down “later this week,” he said, adding that it represents about 1 percent of its stores on the continent.

Employees who work at the soon-to-be shuttered locations may be transitioned to other stores if possible, Grams said. But he added that other affected workers will be provided “severance support.”

Grams suggested that the move was routine, noting that Starbucks shuts down some of its coffeehouses and opens others each year. He said Starbucks is “excited about the significant long-term” status of the company in North America.

“We are actively developing a strong pipeline of new coffeehouses and remain committed to growth,” the statement said.

It is the second big round of store closures under Starbucks Chairman and CEO Brian Niccol, who joined the company in 2024. In September 2025, Starbucks closed 627 stores in North America and Europe and laid off 900 non-retail employees.

Grams also said Starbucks is continuing to retrofit its North American locations to make them cozier and more inviting for customers. The company expects 1,500 of its coffeehouses to be renovated by Sept. 30, the end of its fiscal year.

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

In May, Starbucks laid off an additional 300 corporate employees and closed some underused U.S. offices, the company confirmed at the time. The chain also said it would streamline its real estate footprint in the United States to consolidate regional support office space.

A spokesperson for the chain previously told The Epoch Times that it would reduce its workforce at its Seattle-based headquarters amid organizational changes and as it expands in Nashville, Tennessee.

Starbucks Coffee opened its first location in 1971 inside Seattle’s Pike Place Market, growing into a global brand with 41,000 coffeehouses worldwide and employing approximately 361,000 to 381,000 people.

The Associated Press contributed to this report.