Starbucks said on Thursday that it will be closing 250 underperforming locations across North America. COO Mike Grams told staff in a memo that a review of its operations found many stores that can't consistently deliver adequate financial performance or customer experiences.
The closures represent just over 1% of Starbucks' more than 18,000 North American locations. The company said it will offer affected employees transfers wherever possible and severance when no other position is available. The move comes as Starbucks pushes ahead with its "Back to Starbucks" turnaround strategy, including plans to complete 1,500 store upgrades to entice more customers back into stores.
Grams said the company's North American business has returned to strong growth and that Starbucks remains committed to opening new coffeehouses across the region in the years ahead. Under CEO Brian Niccol, who joined the company from Chipotle in 2024, Starbucks has sought to return the chain to its roots as a neighborhood coffeehouse, placing a greater focus on the in-store experience, faster service, and coffee-making.
As part of its "Back to Starbucks" strategy, the company has restored ceramic mugs, handwritten cup messages, and free refills, while adding seating and updating stores to make them feel warmer and more welcoming. Starbucks has also simplified its menu, removing less popular or complicated items to reduce wait times and improve consistency.
Read the full memo sent to employees below: