Starbucks is closing roughly 1% of its underperforming stores in North America, which amounts to about 150 to 400 stores depending on the report. The closures will largely occur in the next few days and are part of a $1 billion restructuring plan under CEO Brian Niccol's "Back to Starbucks" turnaround strategy. The specific stores selected for closure are those where Starbucks cannot create the expected physical environment for customers and partners or where there is no viable financial path. Additionally, around 900 non-retail corporate jobs will be cut as part of this restructuring. While the company has not released a list of exact store locations closing, it is known that 80 to 90 "Pick Up" stores focused on mobile and quick pickups across more than 20 states in the U.S., including Pennsylvania, will be shut down. Some closures will also happen in the UK and other parts of EMEA, although most closures are concentrated in North America. Starbucks will end fiscal year 2025 with about 18,300 stores across the U.S. and Canada, down from 18,734 at the end of Q3 2025. Employees affected by closures will be notified and offered options to transfer or severance packages. In summary:
- About 150 to 400 Starbucks stores are closing in North America now.
- 80 to 90 mobile "Pick Up" stores are part of the closures.
- Closures are due to inability to provide expected customer experience or financial viability.
- Approximately 900 non-retail jobs are being cut.
- Some store closures are also happening in the UK.
- No detailed list of specific stores has been released.
This is a significant but strategic contraction aimed at improving the overall brand and financial health of Starbucks as it renovates other stores and moves toward growth next year.
