Starbucks announced it will close approximately 250 cafes across North America—roughly one percent of its 18,000-location footprint—and incur $300 million in restructuring charges as part of a U.S. business turnaround.
The company expects $200 million in cash charges for early lease exits and employee separation costs, with an additional $100 million in non-cash charges from asset disposal and impairment. Most closures will occur before the end of fiscal 2026.
More significantly, Starbucks slashed its net new cafe projection for fiscal 2026 to 440 locations—a 26 to 27 percent reduction from its prior guidance of 600 to 650 openings. All 440 new cafes will be built internationally, eliminating net domestic expansion for the year.
This marks the second round of North American closures under CEO Brian Niccol, who has led the U.S. business revamp during his two-year tenure. In a letter to employees, Chief Operating Officer Mike Grams said the company had identified locations "unable to consistently deliver the desired customer and partner experience" or lacking "a path to acceptable financial performance."
Starbucks maintains it sees "significant longer-term growth opportunity in North America" and is developing a pipeline for future expansion, though the immediate pullback signals management recognizes near-term headwinds in its largest market.
