Starbucks announced Thursday it’s closing about 250 North America locations later this week, or roughly 1 percent of the company’s 18,000-plus store portfolio. Chief operating officer Mike Grams, who was promoted to the role in June 2025 after joining the company from Taco Bell that January, said Starbucks “carefully reviewed” locations and identified restaurants “we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance.”
“Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers, and communities affected,” he said in a statement.
Starbucks’ North America business has picked up in recent quarters. Same-store sales lifted 8.1 percent in Q3 (6.1 percent two-year stack) after hiking 7.1 percent in Q2 and 4 percent to open fiscal 2026. Comps were flat in Q4 2025 after declining 2 percent in Q3 2025, 1 percent in Q2 2025, and 4 percent in Q1.
This flip to green, Grams said, has included faster service, more consistent experience, and “warmer, more welcoming coffeehouses.” It also provided a clearer view of the performance of locations and how some venues continue to underperform despite Starbucks’ efforts.
“Every year we close some coffeehouses and open others as part of managing our portfolio,” he said. “And as we shared previously, we remain excited about the significant long-term growth opportunity ahead in North America. We are actively developing a strong pipeline of new coffeehouses and remain committed to growth in North America.”
Starbucks said it’s speaking directly with impacted employees and will support them through the transition, including transfer opportunities “wherever possible.” For those unable to be placed in another restaurant, Starbucks noted it would provide severance support.
“We’ll also help customers continue their Starbucks routines and connections by directing them to nearby coffeehouses,” Grams added.
Starbucks opened 175 net new stores in Q3 globally to exit the period at 41,304. The U.S. comprised 16,933 of those. Overall, Starbucks had 18,371 locations in North America, a 2 percent decline year-over-year from 18,734. So, the company was already taking this rationalization road.
Grams said Starbucks has accelerated pace toward completing 1,500 “coffeehouse uplifts.” This past quarter saw the brand surpass 1,000 across North America, reaching its fiscal 2026 goal ahead of schedule. Going back a period, Starbuck finished about 300, meaning more than 650 restaurants were upgraded in Q3 alone.
Management hinted 2027 could go even faster.
The uplift program prices $150,000 a store and doesn’t result in any time off-line (they happen overnight). The brand developed a refacing initiative where it quickly adds warmth, texture, and better seating at a fraction of the cost of earlier remodels.
These also include digital menuboards, which, more broadly, should be in 80 or 90 percent of restaurants by the end of September, allowing Starbucks to better build its afternoon daypart since it can merchandise offerings.
Company-operated unit growth in North America is expected to remain modest in 2027, with international shouldering most of the lift. Starbucks in Q3 projected global net store growth of about 1.5 percent this year (compared to 2 percent in 2025), including 600–650 net new locations.
After Thursday’s news, global net store growth for fiscal 2026 should come in instead at about 1 percent, with 440 net new stores, reflecting those 250 closures offset by higher net openings overseas.
Associated restructuring costs (most of which will occur in fiscal 2026), William Blair reported, will be roughly $300 million, including $200 million in cash charges related to lease terminations and severance and $100 million in non-cash charges related to disposals and impairments.
Closures did play a role in Q3’s performance. It factored into Q3’s 7.9 percent U.S. comp, with customers bringing business to open locations, the company said during its earnings call. CFO Cathy Smith noted about half, or a little bit less than half, owed to “closures, sales transfer, delivery growth.”
“The rest of it is all that great store performance and menu and innovation,” she said.
Starbucks had 27 net new openings in its corporate business across North America in Q3 and 41 net closures within licensed. Licensed revenues were roughly flat over last year thanks to the retraction. Systemwide comps, however, were positive.
