Starbucks Plans 250 Store Closures Across North America

Commercial Observer reports that Starbucks will close 250 North American stores under its ongoing ‘Back to Starbucks’ overhaul. The latest store-closure announcement is the second mass closure round since Brian Niccol became chairman and CEO in 2024. Starbucks did not identify which stores are affected. The chain has roughly 18,300 locations across North America.

Restructuring Reaches the Store Base

Chief Operating Officer Mike Grams said the targeted coffeehouses are underperforming financially. Others cannot deliver the company’s desired customer and employee experience, according to the report. The closures follow a larger round a little more than a year ago. Starbucks then cut 627 North American and European stores and 900 non-retail jobs. In May, the company announced another 300 US corporate layoffs. It also said underused regional offices would close.

The Details

The actions are part of Niccol’s $1B restructuring plan. Starbucks has been responding to declining sales and increased competition. Unionization is another part of the operating backdrop. Starbucks Workers United formed in late 2021 and has expanded to 700 US stores. No labor agreement has been reached. At the same time, Starbucks is investing in thousands of store retrofits. Grams said 1,500 upgrades are expected to be completed by September 30. The company remains committed to growing its North American store count.

Why It Matters

For retail landlords, the closures add another large-chain portfolio change to an active tenant market. Starbucks says most coffeehouses are benefiting from the broader overhaul. Some locations remain persistent underperformers. The move fits the wider retail pattern of chains pruning weaker locations. Urban stores can face extra challenges. Starbucks closed 42 New York City locations between late 2024 and late 2025. Retail analysts cited smaller footprints and weaker post-pandemic foot traffic as factors. Those constraints can make older urban coffeehouses harder to upgrade than drive-through formats.

What’s Next

The immediate property impact depends on which 250 locations Starbucks selects. The announcement did not provide a store list. The company is simultaneously shrinking weaker parts of its portfolio and upgrading locations it intends to keep. That makes the retrofit program an important counterpoint to the closures. Starbucks also says it expects to expand its North American store count. The next phase should clarify where the chain is willing to reinvest and which physical formats no longer fit its operating strategy.