Starbucks Shuts Down 250 North American Locations in Strategy Shift
Seattle, Friday, 25 September 2026.
Starbucks is closing 250 underperforming North American stores this week. This marks the second major wave of location consolidations under CEO Brian Niccol to streamline operations and boost performance.
Announcement Timeline and Scope
The coffee retailer formally announced the consolidation plan on 2026-09-24, specifying that the closures would occur later in the week [1]. While the total number of affected locations is set at 250 across North America, the company has not disclosed the specific breakdown between United States and Canadian stores [1]. Media reports confirm the closures are scheduled to be completed by 2026-09-27, marking a rapid execution of the strategy [1][4]. This timeline aligns with the company’s fiscal year-end targets, as Starbucks aims to complete the retrofitting of 1,500 North American stores by 2026-09-30 [1]. The lack of specific regional data was noted when Global News requested figures for Canadian closures, to which a spokesperson declined to provide exact numbers [1].
Leadership Strategy and Employee Impact
This operational shift represents the second major wave of store closures under Chief Executive Officer Brian Niccol, who assumed leadership in 2024 [2][5]. Chief Operating Officer Mike Grams addressed the workforce in a memo, explaining that the targeted locations either fail to deliver acceptable financial results or cannot provide the desired experience for customers and employees [4][5]. Regarding the workforce, Starbucks intends to transfer affected employees to alternative store locations where possible [1]. If relocation is not feasible, the company plans to provide severance support, though the specific status of these transfers remains ongoing [1]. This approach follows a pattern of corporate restructuring, including a May 2026 event where 300 corporate employees were laid off and underused U.S. offices were closed [1].
Market Context and Historical Performance
Investors reacted cautiously to the news, with shares declining 0.3% at the opening of trading on 2026-09-24 [1]. This current wave of 250 closures follows a significant consolidation in September 2025, when the company closed 627 stores across North America and Europe [1]. Combining these two major events indicates a total reduction of 877 stores over the past year as part of a broader optimization effort [1]. The closures occur against a backdrop of labor tensions, with over 700 U.S. stores having voted to unionize since late 2021, though no labor agreement has been reached [1]. The company maintains that most locations are benefiting from overall momentum, despite the underperformance of specific coffeehouses [1][5].