Starbucks to shut about 250 underperforming North American stores

Starbucks disclosed that it will close approximately 250 underperforming coffeehouses across North America, accounting for just over 1% of its more than 18,000 locations in the region. In a memo to staff, COO Mike Grams explained that the decision follows a portfolio review that highlighted stores unable to consistently deliver the desired customer experience or financial results. The company will seek to relocate impacted partners to other stores and will provide severance to those who cannot be reassigned.

The closures are tied to the “Back to Starbucks” strategy, which aims to boost growth through 1,500 store upgrades and a renewed focus on faster service and a welcoming atmosphere. Grams noted that the North American business has returned to strong growth and that Starbucks remains committed to opening new stores in the coming years. He acknowledged the difficulty of the closures for employees, customers, and communities, and pledged ongoing support for those affected.