Starbucks closes 250 stores and cuts its new-store target to 440 from as many as 650
The closures cost about $1.2 million a store in charges. The filing also shows Starbucks now expects far fewer net new coffeehouses this fiscal year than it guided.
Starbucks is closing about 250 company-operated coffeehouses in North America this week, roughly 1% of its more than 18,000 stores there. Chief Operating Officer Mike Grams said in a letter to employees on Thursday that the locations either cannot deliver the experience the company wants or have no path to acceptable financial performance, Fox Business and USA Today reported. Starbucks did not publish a list of the stores.
The shares were up 0.57% at $94.18 on Friday morning, according to Nasdaq.com.
The number in the filing: fewer new stores
Most coverage stopped at the 250 closures. Starbucks' 8-K filed with the SEC carries a second change. The company now expects about 440 net new company-operated and licensed coffeehouses worldwide in fiscal 2026, which ends Sept. 30, down from prior guidance of 600 to 650. That is a cut of 160 to 210 net stores, and Starbucks says it is driven by the North American closures, partly offset by more openings in international markets.
The board approved the move on Sept. 22. Starbucks expects about $300 million of restructuring charges: about $200 million in cash, mainly to exit leases and pay severance, and about $100 million of non-cash write-downs of store assets. Most closures and a significant part of the charges will land in fiscal 2026.
| Item | Total | Per closed store (our math) |
|---|---|---|
| Restructuring charges | $300 million | about $1.2 million |
| Cash charges (leases, severance) | $200 million | about $800,000 |
| Non-cash asset write-downs | $100 million | about $400,000 |
About $800,000 of cash per store, mostly lease exits and severance, shows how expensive it is to get out of a commercial lease early, even for the biggest tenant in the category.
This is the second round under Chairman and CEO Brian Niccol. Starbucks closed 627 stores in North America and Europe last September, according to AP reporting summarised by NACS. Starbucks Workers United told USA Today that 20 unionized stores are among the closures. Starbucks said affected workers will be offered transfers where possible and severance otherwise, and that it expects to finish remodeling 1,500 North American coffeehouses by Sept. 30.
What it means for independent coffee shops
68,064 independent coffee shops are listed on CheckThisBiz, a directory of 7,704,724 independent US businesses, including 8,628 in CA, 4,916 in NY, 4,701 in TX. Chains and franchises are excluded from that count, so these are the owner-operated businesses that actually apply for funding.
Set against that count, Starbucks' 250 closures are small, about one for every 270 independent shops. The effect is local, not national: an independent café a few blocks from a closing Starbucks may pick up morning traffic, and a landlord with a freshly vacated coffee-ready space may be more willing to negotiate. Because Starbucks has not named the stores, owners will only know as the doors close this week. The chain's stated reason, stores that cannot hit its financial bar despite the company's scale, is also a reminder that rent and labour costs in a weak location beat brand strength.
Sources: Starbucks Form 8-K, Sept. 24, 2026; Fox Business; USA Today; NACS citing the Associated Press; Nasdaq.com; CheckThisBiz. This is market information, not investment advice.
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