Starbucks will close about 250 of its more than 18,000 North American coffeehouses, according to an 8-K filing. The company names the stores as ones that “do not deliver the coffeehouse experience and financial performance expected of the brand.” Starbucks expects most of the closures to be done by the end of fiscal 2026.
The closures carry about $300 million in restructuring charges. About $200 million is cash, mostly lease exit costs and employee separation benefits. The other $100 million is non-cash, for the disposal and impairment of company-operated store assets.
Starbucks closed 627 stores in North America and Europe in a larger round last September. It also cut about 900 non-retail jobs, per PBS News. Workers at the stores closing now will be offered roles at other stores where possible, or severance.
CEO Brian Niccol wants the stores that stay open replenished within 24 hours, with less storage in the back of house. He told analysts on the fiscal third-quarter call he wants the “right inventory at the right location at the right time.”
About 60% of US stores are on a daily replenishment cycle, according to Bernstein analyst Danilo Gargiulo. The rest run on a roughly 72-hour cadence. Gargiulo called the slower cycle “too slow to support fresher, lower-velocity food items like small bites consistently.” Starbucks scrapped its computer-vision inventory counting tool that same month after nine months, and went back to one standard manual count.
Starbucks now expects about 440 net new stores worldwide in fiscal 2026, down from its earlier forecast of 600 to 650. More openings in its international markets partly offset the North American closures. The company said it is building a pipeline of new North American stores.
