Starbucks is preparing to close about 250 stores across the US and Canada this week as the coffee giant changes its North American business under CEO Brian Niccol.
Chief Operating Officer Mike Grams said Starbucks reviewed its coffeehouse portfolio and identified locations where the company either could not consistently deliver the experience it wants for customers and employees or saw no clear path to acceptable financial performance.
The closures represent roughly 1% of Starbucks’ North American store base and follow a similar move almost exactly a year ago. Starbucks reported 18,371 locations across North America last quarter, down from 18,734 a year earlier.
For now, the closures seem to be part of Starbucks’ wider plan to concentrate investment on stronger-performing locations while improving the experience inside its remaining cafés.
Starbucks Is Spending on the Stores It Keeps
Alongside the closures, Starbucks is accelerating a major redesign program to restore the coffeehouse atmosphere that helped build the brand. The company said Wednesday that more than 1,000 stores across the US and Canada have already been redesigned, with changes including the return of more seating and a warmer, more comfortable café environment.
Starbucks plans to complete at least 1,500 of these so-called “uplifts” by the end of fiscal 2026 before accelerating the program further in fiscal 2027.
The strategy is central to Niccol’s turnaround plan, which places a lot of emphasis on improving service, simplifying operations and making Starbucks locations feel more like traditional coffeehouses rather than primarily pickup points.
Starbucks is also investing outside its physical store network. The company announced plans this week to establish a new technology hub in Chennai, India, next year. This is yet another indication that management is cutting weaker assets and investing in areas it believes can support long-term growth.
Starbucks Stock Slips as Investors Process Turnaround
Starbucks shares ended Wednesday at $93.65, down 0.52% for the session from the previous close of $94.14. The stock remained slightly lower in after-hours trading at around $93.59.
Starbucks stock price (Source: CoinCodex)
The muted reaction suggests investors are still weighing the costs and potential benefits of Starbucks’ restructuring.
Closing another 250 stores may attract attention, but the bigger picture is a business trying to improve the economics of its store network while spending heavily on the locations it believes have the strongest future. For Starbucks, the next test will be whether fewer underperforming stores and a more inviting coffeehouse experience can translate into stronger traffic, margins and sustained growth.
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