Starbucks Confirms 250 Closures After Gaining 'Deeper Visibility Into Some Underperforming' Stores

Starbucks plans to close 250 underperforming U.S. stores, including six in Washington, by the end of 2026, incurring $300 million in restructuring charges. The company will relocate affected employees or offer severance. Starbucks has also cut 1,200 corporate jobs in recent layoffs, with 200 from its Seattle headquarters.

Starbucks will permanently close its Village Green Shopping Centre location in Vernon by September 26. The closure is part of a broader plan to shut down 250 North American stores by 2026, incurring $300 million in restructuring costs, according to a regulatory filing. Two other Starbucks locations remain in Vernon.

Starbucks plans to close 250 stores in North America by 2026 and reduce its global store-opening target for the year, despite reporting four consecutive quarters of growth. The closures are expected to cost $300M in lease agreements, severance, and asset disposition. The company is adjusting its expansion strategy, which offers lessons for small businesses about scaling and managing growth.

Starbucks will close 250 underperforming stores in North America by week’s end, about 1% of its total locations, to streamline operations. The company expects $300 million in restructuring charges and reduced its new store opening target. Affected employees will receive support and transfer opportunities. Starbucks Workers United criticized the decision, citing lack of barista input.

Starbucks will close 250 North American stores this week, citing underperformance. CEO Mike Grams stated the closures aim to improve financial results and customer experience. The company plans to retrofit 1,500 stores by September 30. Starbucks expects $300 million in restructuring charges, including $200 million in cash expenses. Shares fell less than 1% on Thursday.

Starbucks Coffee announced it will close 250 stores in the U.S. and Canada, including three in San Luis Obispo, according to the company. Specific locations were not listed by Starbucks, but a fan compiled a list of closures, which included the three stores in San Luis Obispo that have posted closure notices.