The move targets locations that Starbucks says are falling short on customer experience or financial performance, while the company continues investing in its broader store strategy.

  • Starbucks plans to close about 1% of its North America coffeehouses.
  • The coffee giant will support employees impacted by the closures with transfers and severance where applicable.
  • The closures come as Starbucks has surpassed 1,000 coffeehouse uplifts and targets at least 1,500 by the end of fiscal 2026.

Starbucks Corp. (SBUX) said on Thursday that it will close approximately 250 North America coffeehouses later this week, with COO Mike Grams saying the locations include those that the firm believes cannot consistently deliver the desired customer and partner experience or lack a path to acceptable financial performance.

SBUX was trading nearly 1% lower in premarket trading at the time of writing.

Starbucks To Close 250 Coffeehouses

The planned closures represent approximately 1% of Starbucks’ more than 18,000 North America coffeehouses, according to Grams.

Starbucks said it regularly opens and closes coffeehouses as part of managing its portfolio and remains committed to long-term growth in North America. The company is also developing a pipeline of new coffeehouses.

“Our Back To Starbucks strategy is working,” Grams added. “This progress has given us a clearer view of the performance of every coffeehouse. While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you,” he said in a blog directed to partners.

Closures Come As Starbucks Pushes Coffeehouse Uplifts

The announcement comes one day after Starbucks highlighted progress on its coffeehouse redesign program. The company said it had completed more than 1,000 coffeehouse uplifts across the U.S. and Canada since late 2025 and plans to complete at least 1,500 by the end of fiscal 2026.

The redesigned locations feature softer seating, textures, artwork, greenery and local design touches, with Starbucks saying the changes are intended to make coffeehouses more welcoming and encourage customers to stay and connect. The company is also expanding the initiative to additional communities across the U.S. and Canada while building on its coffeehouse uplift rollout in Mexico.

Starbucks To Support Impacted Partners

Starbucks said it will speak directly with partners at affected coffeehouses and support them through the transition, including transfer opportunities wherever possible.

For partners the company is unable to place at another coffeehouse, Starbucks will provide severance support. The company will also direct customers to nearby coffeehouses to help them continue their Starbucks routines and connections.

Retail View On SBUX

Retail sentiment on Stocktwits for Starbucks (SBUX) stayed 'bullish' over the past 24 hours, though message volume was 'low.’

SBUX stock has gained over 10% year-to-date.

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