Starbucks announced plans to close approximately 250 underperforming stores across North America as part of an ongoing effort to streamline operations and increase profitability. The closures, expected to be mostly completed by the end of the 2026 fiscal year, mark the second significant round of café shutdowns under CEO Brian Niccol, who took charge of the company two years ago.

The company will incur around $300 million in restructuring charges due to the closures. This follows a previous wave of store closures last year, including the shutdown of the Seattle roastery, which was linked to a broader restructuring estimated to cost roughly $1 billion. The latest closures represent about 1 percent of Starbucks’ roughly 18,000 stores in North America.

Niccol, formerly the CEO of Chipotle Mexican Grill, has spearheaded a “Back to Starbucks” plan aimed at boosting customer visits by simplifying menus and reducing wait times. The initiative also involves investments in store and kitchen operations, as well as company-wide cost reductions—such as layoffs of around 2,000 corporate workers and the closure of certain regional offices.

Despite these challenges, Starbucks has reported four consecutive quarters of comparable sales growth as of July 2026. Niccol noted an increase in customer traffic across all income groups earlier this year, signaling some success with the turnaround strategy.

As of the end of June, Starbucks owned and operated 1,149 stores in North America, a figure expected to decline further with the planned closures. Meanwhile, the company anticipates opening about 440 new stores globally this year, down from the earlier target range of 600 to 650.

Market analysts have described the move as a necessary but costly component of Starbucks’ ongoing restructuring efforts. Some caution that sustained improvement in sales and profit margins will be crucial to maintain investor confidence moving forward.

The planned closures and operational changes come as Starbucks seeks to adapt to shifting consumer behaviors and increased competition in the coffee and quick-service market, with Niccol emphasizing efficiency and customer experience as key factors in the company's path forward.