Starbucks has announced plans to close approximately 250 of its company-operated stores across North America. The move is part of a broader strategic realignment that also includes a significant investment in remodeling more than 1,000 existing cafes in the United States and Canada, with a goal of reaching 1,500 updated locations by the end of fiscal 2026.
This action represents the second major round of closures under a corporate turnaround strategy initiated in 2024. The 250 locations constitute about 2.2% of the company's 11,149 corporate-owned stores in the region. The company previously announced a similar contraction in late 2025, which included hundreds of store closures and non-retail job cuts as part of the same effort.
The adjustments to Starbucks' retail portfolio occur as the U.S. market sees intensified competition. Fast-growing, drive-through-focused chains like Dutch Bros and 7 Brew are expanding rapidly, with Dutch Bros reporting a 17.4% year-over-year increase in its store count to 1,225 locations. The strategic changes also unfold against a backdrop of an ongoing unionization campaign that has affected over 700 U.S. stores since late 2021.