Starbucks To Close 250 North American Cafes as CEO Brian Niccol Targets Underperforming Stores
Starbucks will close 250 underperforming North American cafes, representing 1 per cent of its regional footprint, to boost financial returns under CEO Brian Niccol. The company also reduced its global store opening target for fiscal 2026. COO Mike Grams noted that the 250 closures account for approximately one percent of the chain's 18,000 total North American locations.
Starbucks has announced it will close 250 additional cafes across North America as part of its ongoing corporate strategy to improve overall financial returns. The coffee giant described the closures as a targeted culling of underperforming venues. The move forms part of a wider effort to optimize operations in North America under the leadership of CEO Brian Niccol, who took the helm in September 2024.
Portfolio Review and Leadership Rationale
Chief Operating Officer Mike Grams explained that the company evaluated its regional portfolio to identify locations struggling with long-term viability, reports AFP. Viral Starbucks Snoopy Glass Cup Leads 2026 Peanuts Fall Collection; Check Prices and Lineup.
“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” said Chief Operating Officer Mike Grams.
Grams noted that the 250 closures account for approximately one percent of the chain's 18,000 total North American locations.
Broader Restructuring and Strategy Shift
The latest announcement follows a similar restructuring initiative from a year prior, which involved eliminating hundreds of underperforming North American stores alongside the removal of administrative jobs. Niccol, the former CEO of fast-food chain Chipotle, has focused heavily on revitalising Starbucks in its domestic market following a stretch of sluggish financial performance. His strategy emphasizes the "Green Apron Service" initiative, which encourages baristas to elevate customer interactions through personalised gestures, friendly engagement, and memorable service standards. Starbucks Layoffs: US-Based Coffeehouse Lays Off Over 200 HQ Workers; Files WARN Notices.
Alongside trimming its retail footprint, Starbucks has adjusted its global expansion targets. The company previously anticipated opening between 600 and 650 new stores worldwide this year; however, a recent regulatory filing indicates that target has been revised to approximately 440 new shop openings for fiscal 2026. Following the announcement, Starbucks shares experienced a slight decline, trading down 1.2 percent during early afternoon trading.
(The above story first appeared on LatestLY on Sep 25, 2026 07:13 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).