Starbucks closing 250 locations in North America; accelerating cafe remodels
Starbucks Corp. is closing roughly 1% of its North American locations amid its ongoing “Back to Starbucks” turnaround strategy.
The coffee giant on Thursday said it plans to shutter approximately 250 of the more than 18,000 cafes it operates across North America. In a letter to employees on the company’s website, COO Mike Grams said the closings will occur this week.
According to Grams, the locations going dark are those where Starbucks doesn’t believe it can consistently deliver "the experience we want for customers and partners or where we don’t see a path to acceptable financial performance." He noted that store closings and openings are part of Starbucks’ ongoing portfolio management.
“We remain excited about the significant long-term growth opportunity ahead in North America,” Grams said. “We are actively developing a strong pipeline of new coffeehouses and remain committed to growth in North America."
For fiscal 2026, Starbucks now forecasts net new openings of 440 coffeehouses, down from its prior outlook of 600 to 650 locations the company said in a regulatory filing.
Starbucks expects to incur about $300 million in restructuring charges related to the closures. About $200 million of that charge will be related to the costs of exiting leases early and paying employees separation benefits. The remaining $100 million will be noncash charges from the disposal and impairment of its company-owned restaurant assets.
The closures come as Starbucks in July reported its fourth consecutive quarter of comp growth and second consecutive quarter of margin expansion.
Remodels
In other developments, Starbucks is accelerating its remodel, or “uplift,” program, which is key to its turnaround strategy. Unveiled in 2025, the program is designed to make over the company’s cafes to create physically welcoming spaces that bring back familiar touches such as generous seating and designs reflecting the local community.
Since late 2025, Starbucks has updated more than 1,000 coffeehouses across the U.S. and Canada. It’s now accelerating the pace, with the goal completing at least 1,500 uplifts by fiscal year-end 2026 and accelerating further in fiscal 2027.
“This marks an important moment as we move from early test-and-learn pilots to a broader rollout focused on improving the coffeehouse experience and strengthening our role as a Third Place for our customers and communities,” said Dawn Clark, Starbucks senior VP, global design and concepts, in a post on the company’s website.
Uplifts are now underway across a growing number of U.S. and Canadian markets including Atlanta; Austin; Dallas; Houston; Miami; Nashville; Orlando; Seattle; and Washington, D.C.; Toronto; Vancouver; and Calgary.
“In Mexico, we’re piloting uplifted locations across Mexico City, Monterrey, Acapulco and Ensenada, with plans for more locations as part of a broader reinvestment in the market,” Clark added.
Clark noted that every uplift starts with the neighborhood and is tailored to reflect the community it serves.
As of the end of June, Starbucks had a total of 41,304 stores (with 33% company-operated and 67% licensed).
