Starbucks will close 250 coffeehouses across North America later this week, marking the second major round of store shutdowns under Chairman and CEO Brian Niccol, who took the helm in 2024. The closures follow a September 2025 effort that saw 627 locations in North America and Europe shut and 900 non‑retail staff laid off.
Why the stores are closing
Chief Operating Officer Mike Grams explained in a letter to employees that the targeted locations either failed to deliver acceptable financial results or could not provide the experience Starbucks strives for its customers and staff. While the company has not disclosed which specific stores will close or how many are in the United States, it also did not reveal how many of the affected sites are unionized.
Union context
More than 700 U.S. Starbucks stores have voted to unionize since late 2021. Starbucks has consistently opposed the unionization effort, and negotiations between the company and the union have yet to produce a labor agreement.
Ongoing store improvements
Grams said Starbucks remains committed to retrofitting its North American coffeehouses to make them cozier and more inviting. The company aims to complete upgrades at 1,500 stores by September 30, the end of its fiscal year, and believes the progress gives a clearer view of each coffeehouse’s performance.
Employee support
The company pledged to transfer employees to other locations where possible and to provide severance support for those who cannot be reassigned. In May, Starbucks also laid off an additional 300 corporate employees and closed several underused U.S. offices.
Market reaction
Starbucks shares rose less than 1% in pre‑market trading on Thursday following the announcement, indicating modest investor confidence in the company’s strategic direction despite the closures.
What this means for the community
While the closures will affect neighborhoods that lose a local coffeehouse, Starbucks emphasizes that the retrofitting program and continued expansion plans are intended to strengthen the brand’s presence and improve the customer experience in the long term. The company’s approach reflects a balance between prudent financial management and a commitment to its workforce and patrons.
Original reporting: KTBS 3 (Shreveport) — read the source article.
