Starbucks Store Closures Trim 2026 Expansion

Starbucks Corp. (SBUX) disclosed in a regulatory filing dated Sept. 24, 2026, that it will close about 250 underperforming North American coffeehouses, incur related restructuring charges, and reduce its fiscal 2026 store-opening outlook.

Closures, Charges, and Employee Impact

Starbucks plans to shutter roughly 1% of its approximately 18,000 North American locations, with most closures expected by the end of fiscal 2026. The company anticipates about $300 million in restructuring charges tied to the program, including $200 million in lease-exit costs and employee-separation benefits, and $100 million in noncash disposal and impairment charges. These costs primarily relate to the closures and fiscal 2026.

Chief Operating Officer Mike Grams said the company reviewed its North American portfolio and identified stores that could not consistently deliver the desired customer and employee experience or lacked a path to acceptable financial performance. Employees at closing stores may transfer to nearby locations where opportunities exist; those who cannot be reassigned will receive severance or separation support. The company disclosed the plan in its Sept. 24 filing and indicated no separate government, antitrust, or exchange approvals are required.

Revised Guidance and Strategic Context

Starbucks lowered its fiscal 2026 global net-new-store guidance to about 440 locations from a prior range of 600–650, reducing expected openings by roughly 160 to 210. This figure includes both company-operated and licensed coffeehouses worldwide. The planned new cafés for the year are expected mainly from international markets, while the company continues to see longer-term growth opportunities in North America.

The company’s North American coffeehouse retrofit program is ongoing, with about 1,500 stores expected to be retrofitted by Sept. 30, 2026, the end of the fiscal year. The announced closures mark the second major North American reduction under Chief Executive Brian Niccol, who joined in 2024; a prior round closed 627 stores across North America and Europe.

The restructuring charges and reduced store-opening outlook narrow near-term expansion and capital allocation. However, Starbucks maintains a longer-term pipeline, including a reported goal of roughly 400 net-new company-operated U.S. stores in fiscal 2028.

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“This progress has given us a clearer view of the performance of every coffeehouse,” Mike Grams wrote in an employee letter dated Sept. 24, 2026.