National News

Starbucks to close 250 North American stores

Photo Supplied/Starbucks

SEATTLE (WOWO) — Starbucks plans to close 250 stores across North America this week as the coffee chain continues restructuring its operations.

According to 21Alive, the company has not released a list of the locations that will close or said how many are in the United States. Starbucks Chief Operating Officer Mike Grams said the affected stores are either not meeting the company’s financial expectations or cannot provide the experience Starbucks wants for customers and employees.

The closures mark the second major round under Chairman and CEO Brian Niccol, who joined Starbucks in 2024. The company closed more than 600 locations in North America and Europe last year.

Starbucks Workers United says 20 unionized locations are included in the latest closures. The union represents workers at hundreds of company-owned Starbucks stores across the United States.

Employees at affected stores will be offered transfers to other locations when possible. Starbucks says workers who cannot be transferred will be offered severance support.

The company is also continuing a broader renovation effort aimed at making its coffeehouses more inviting. Starbucks expects approximately 1,500 North American stores to have been remodeled by the end of its fiscal year on Sept. 30.

Despite the closures, Starbucks says it still plans to grow its overall store count in North America. The company had 18,371 locations in the region at the end of June.

Starbucks expects approximately $300 million in restructuring charges related to the latest round of closures, including lease costs, employee separation benefits and other expenses.

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