Starbucks has announced plans to close approximately 250 company-operated coffeeshops across North America, a move the company says is aimed at strengthening its long-term network rather than signalling broader trouble for the brand.
The announcement, made public on Sept. 24, comes as part of what Starbucks describes as an ongoing effort to sharpen its footprint and focus resources on locations with stronger long-term prospects. The closures represent roughly 1% of the company’s approximately 18,000 North American company-operated and licensed locations. Starbucks has not released a country-by-country breakdown, so it remains unclear whether any Canadian locations are among the stores set to shut down.
Mary Franssen, senior manager of Canada Corporate Communications at Starbucks Coffee Company, said the decision followed a close review of how individual stores are serving their communities. She said the shift comes as the company’s ‘Back to Starbucks’ initiative has given leadership clearer insight into which locations have a viable path forward and which do not.
Affected stores will post notices for customers over the coming days, and Starbucks says people can use its website or mobile app to find alternative nearby locations. The company has said supporting employees at closing stores is a priority, with transfer opportunities to be offered where possible depending on local availability and business needs. Severance and transition support will be provided to workers who cannot be relocated to another store.
A Pattern of Network Changes
The latest round of closures follows a broader reshaping of Starbucks’ footprint over the past year, during which the company closed a number of underperforming North American locations, including its flagship Seattle roastery.
In a regulatory filing, Starbucks said the new closures will generate approximately US$300 million in restructuring charges, funds the company says can be redirected toward its more profitable business lines.
Despite the closures, Starbucks says it continues to invest in its physical locations, reporting 60 net new store openings so far in its third quarter and plans to complete at least 1,500 coffeehouse redesigns by the end of fiscal 2026. However, the company has scaled back its global growth outlook, with net new global store openings for 2026 now projected at roughly 440, down from an earlier target.
Lale Akoner, global market strategist at eToro, told Reuters the closures represent ‘a sensible but costly step in Starbucks’ turnaround,’ pointing to the trade-off between near-term expense and longer-term gains.
Niccol’s Turnaround Push
The restructuring is unfolding under Starbucks CEO Brian Niccol, who has been leading the company’s ‘Back to Starbucks’ strategy focused on restoring a classic coffeehouse atmosphere while simplifying menus and cutting down wait times.
In a letter to staff, Starbucks Chief Operating Officer Mike Grams said the company wants every location to be a space customers enjoy and employees are proud to work in. Part of that effort includes redesigning stores to feel warmer and more welcoming, with more than 1,000 redesigns already completed across Canada and the United States under the company’s coffeehouse uplift program.
Starbucks has reported four consecutive quarters of comparable sales growth as of July 2026, which Reuters attributed to steady customer visits across different income levels. Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters that Niccol has shown early progress in building customer momentum, adding that the next challenge will be turning that momentum into stronger profit margins.
For Canadian customers, it remains unknown whether any local stores will be affected by the closures. In the meantime, the broader push to streamline operations and redesign stores may bring a somewhat different in-store experience for customers over time.
Starbucks Restructuring by the Numbers
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