Starbucks, the largest coffee chain in the United States, is closing 250 stores. The company said these locations were underperforming and could not deliver results. This decision is part of a broader turnaround strategy led by CEO Brian Niccol. He joined Starbucks in 2024 and has been restructuring the business since then.
The closures represent about one percent of the company's 18,000 North American locations. Starbucks expects to face approximately $300 million in restructuring charges from this move. About $200 million will cover costs from ending leases early and employee severance. The company will now open 440 net new stores instead of its earlier forecast.
This is the second consecutive year of major store closures under Niccol's leadership. Last year, the company shut down around 400 stores and cut 900 corporate jobs. Niccol's strategy, called 'Back to Starbucks,' aims to restore the coffeehouse experience. The plan includes upgraded shops, simplified menus, and reduced wait times for customers.
Despite the closures, Starbucks still sees long-term growth opportunity in North America. The company has already remodeled over 1,000 stores and plans to accelerate further upgrades. Affected employees will be offered transfers to nearby locations when possible. If the turnaround strategy succeeds, Starbucks would strengthen its market position significantly.
