USD 300 Million Hit: Starbucks Announces Fresh Round of US, Canada Closures

$300 million and 250 locations: inside Starbucks' next round of closures

September 26, 2026

The coffee chain expects roughly $300 million in charges from its latest round of store closures across the US and Canada

Closures represent about 1% of Starbucks’ 18,000-store North American footprint and follow a similar round a year ago

Starbucks is set to close around 250 locations across North America in the coming days as the coffee chain continues to trim its store footprint under its ongoing turnaround effort, according to a CNN report.

The company said the affected stores either haven’t delivered the customer and employee experience it’s aiming for or aren’t financially viable. The closures represent roughly 1 per cent of Starbucks’ approximately 18,000-store North American footprint.

A year into a $1 billion restructuring

The move follows a similar round of closures a year ago, when CEO Brian Niccol announced comparable cuts alongside corporate layoffs as part of a $1 billion restructuring plan. Since then, the company has been pursuing a multi-year effort to renovate cafes, improve service and simplify its menu across North America as it works to return to growth.

The latest round of closures is expected to result in roughly $300 million in charges, according to a regulatory filing cited in the report. About $200 million of that will come from costs tied to ending leases early and severance payments for affected employees.

Starbucks has not yet released a list of the specific locations being closed. Customers are expected to start seeing closure notices posted at stores from this weekend, with the changes also reflected in the Starbucks app.

Growth plans scaled back, but sales improving

Chief Operating Officer Mike Grams struck an optimistic tone in a letter to employees, saying the company remains “excited about the significant long-term growth opportunity ahead in North America” and is building a pipeline of new coffeehouses. Even so, Starbucks now expects to open about 440 new locations globally this fiscal year, down from its earlier projection of 600 to 650 openings.

The closures come even as the chain shows signs of a turnaround taking hold: US same-store sales rose 7.9 per cent in its most recent quarter, with Niccol telling investors in July that it marked the quarter when the company’s “momentum became truly measurable.”

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