Work Life

Starbucks to Shutter 250 North American Locations

A review of the company's North American portfolio has identified 250 underperforming coffeehouses, prompting Starbucks to initiate a wave of closures. COO Mike Grams confirmed the decision in an internal memo, noting that these locations failed to meet consistent standards for financial performance and the desired customer experience.

Starbucks to Shutter 250 North American Locations

These closures account for just over 1% of the company's footprint across the region, which encompasses more than 18,000 stores. The move is a calculated element of the broader "Back to Starbucks" turnaround strategy, which aims to modernize the brand through 1,500 store upgrades and improved service standards. Despite the reduction, leadership maintains that the overall North American business has returned to strong growth and plans to continue opening new locations in the coming years.

Impacted employees will be offered transfers to nearby stores whenever possible, with severance packages provided to those who cannot be reassigned. The company intends to direct existing customers to alternative locations as the transition unfolds. Grams characterized the decision as a necessary step to ensure that every remaining shop adheres to the brand's revitalized operational benchmarks.

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