Starbucks is preparing to close approximately 250 additional stores across Canada and the United States, as the coffee giant continues a major restructuring effort aimed at improving the performance of its North American business.
The company announced the latest closures on September 24, saying the affected coffeehouses were identified through a detailed review of its store network. Starbucks said the locations being closed either have not achieved acceptable financial performance or are unable to provide the type of customer and employee experience the company expects. The closures represent roughly 1 per cent of Starbucks’ more than 18,000 North American locations. The company has not yet released a complete breakdown showing how many of the affected stores are in Canada and how many are in the United States. Starbucks Chief Operating Officer Mike Grams said the company evaluated individual locations based on a number of factors, including financial performance, customer experience and the ability of the stores to operate successfully within the company’s current strategy. The latest announcement follows a much larger round of closures last year. In 2025, Starbucks closed 627 stores in North America and Europe as part of an effort to streamline its operations and concentrate resources on locations with stronger long-term potential. The company has also reduced its corporate workforce and made changes to its office operations as it attempts to control costs while investing more heavily in its retail stores. The restructuring is being carried out under CEO Brian Niccol, who took over leadership of Starbucks in 2024. Niccol has been leading the company’s “Back to Starbucks” strategy, which focuses on restoring the company’s coffeehouse experience, improving customer service and making stores more attractive places for customers to spend time. Starbucks has said that the strategy includes simplifying operations, improving staffing levels, reducing wait times and strengthening the connection between customers and baristas. The company is also investing in stores that remain open. Starbucks expects to complete upgrades at approximately 1,500 coffeehouses by the end of its 2026 fiscal year. The improvements are intended to create more welcoming spaces while making stores more functional for employees and customers. The company said the closures are not intended to signal a retreat from the North American market. Instead, Starbucks is seeking to reshape its store portfolio by closing locations that are not performing as expected while continuing to open new stores in markets where it sees opportunities for sustainable growth.
Employees working at stores selected for closure are expected to be offered opportunities to transfer to other Starbucks locations where positions are available. Workers who cannot be transferred will receive severance and other support under the company’s policies.
The latest restructuring is expected to cost Starbucks approximately US$300 million. The costs include expenses related to closing leases, employee separation benefits and impairments associated with store assets. The closures also come as Starbucks faces a changing North American restaurant and coffee market. Consumers have become more selective about discretionary spending, while higher operating costs, labour expenses and changing customer habits have placed pressure on many large restaurant and retail chains. Starbucks has been attempting to respond by focusing more closely on its core coffee business. The company has also been working to reduce complexity in its menu and improve the speed and consistency of service. In Canada, Starbucks operates hundreds of company-operated and licensed locations across the country. However, the company has not yet provided a public list identifying which Canadian stores will be affected by the latest round of closures. The absence of a location-by-location list means employees and customers in individual Canadian communities may have to wait for further communication from Starbucks before knowing whether their local store will be affected. Starbucks said the broader goal is to build a healthier and more sustainable store network rather than simply reduce the number of locations. The company continues to invest in new coffeehouses, store renovations and employee initiatives while reviewing the performance of existing locations. The latest closures therefore form part of a broader transformation at Starbucks, with the company balancing cost reductions and store closures against investments intended to improve customer traffic and the overall coffeehouse experience. Further details about the specific Canadian and U.S. locations scheduled to close are expected to become available as Starbucks communicates the changes to affected employees and customers.