Starbucks announced plans to shut down 250 underperforming locations across North America and lower its store-opening guidance for fiscal year 2026, the latest move in CEO Brian Niccol’s ongoing turnaround effort.
The closures will affect approximately one percent of Starbucks' roughly 18,000 North American stores and are expected to be largely completed by the end of fiscal year 2026, the company said Thursday. Starbucks anticipates restructuring charges of around $300 million related to the move.
The chain also revised its worldwide new-store outlook, forecasting approximately 440 openings of company-operated and licensed locations in fiscal 2026, down from a previous target of 600 to 650.
Niccol, who completed two years at the helm in September after previously leading Chipotle Mexican Grill, has been pushing his "Back to Starbucks" plan to revive growth. The strategy centres on shorter customer wait times, simplified menus in the United States, an updated loyalty programme, and new product offerings such as protein milk foam. The company has also invested in store and kitchen operations while reducing administrative headcount and closing regional offices.
Revenue grew for four consecutive quarters through July, and Niccol noted in April that foot traffic had risen across all income groups. Demand for high-priced specialty coffees has held up despite broader consumer caution, particularly among lower-income U.S. shoppers struggling with elevated fuel and grocery costs.
This marks the second major restructuring round in a little over a year. Last year, Starbucks closed several unprofitable stores, including its flagship roastery in Seattle, as part of an overhaul that carried an estimated $1 billion in restructuring costs.
