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Starbucks to close 250 North American stores amid turnaround plan
Starbucks has announced plans to close approximately 250 underperforming coffeehouses across North America this week. The move, which represents about 1% of the company's more than 18,000 locations in the region, is part of a broader turnaround strategy led by CEO Brian Niccol to improve unit economics and customer experience.
Chief Operating Officer Mike Grams stated that the targeted locations either failed to meet financial performance standards or could not consistently deliver the desired customer and employee experience. The company expects to incur roughly $300 million in restructuring charges, including $200 million in cash costs for lease exits and employee separation benefits, and $100 million in non-cash asset impairment charges.
Starbucks intends to offer affected employees transfers to nearby locations where possible, providing severance support to those who cannot be reassigned. While the company is reducing its footprint in certain areas, it maintains a long-term growth strategy for North America and has revised its global net new store opening forecast for fiscal 2026 to approximately 440 locations, down from previous estimates of 600 to 650.
Entities
Brian Niccol · Mike Grams · North America · Starbucks · Starbucks Workers United
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] The closures are part of a turnaround strategy led by CEO Brian Niccol. www.durangoherald.com · reddot.my · capitalhillnews.com · enterprisewired.com · abc17news.com
- [● 5 SOURCES] Starbucks has lowered its net new global store opening forecast for fiscal 2026 to approximately 440 locations. enterprisewired.com · ogunhaber.com · www.verdictfoodservice.com · abc17news.com · atarde.com.br
- [● 8 SOURCES] Affected employees will be offered transfers to other locations or severance support if reassignment is not possible. cretaone.gr · www.durangoherald.com · reddot.my · capitalhillnews.com · enterprisewired.com · +3 more
- [● 16 SOURCES] Starbucks will close approximately 250 underperforming North American stores this week. cretaone.gr · www.durangoherald.com · capitalhillnews.com · enterprisewired.com · medfordalert.com · +11 more
- [● 7 SOURCES] The company expects approximately $300 million in restructuring charges due to the closures. cretaone.gr · capitalhillnews.com · enterprisewired.com · ogunhaber.com · www.verdictfoodservice.com · +2 more
- [● 14 SOURCES] The closures represent approximately 1% of the company's more than 18,000 North American locations. www.durangoherald.com · capitalhillnews.com · enterprisewired.com · medfordalert.com · ogunhaber.com · +8 more