Starbucks plans to close 250 stores across North America as the coffee giant continues a corporate restructuring under Chairman and CEO Brian Niccol, who took over leadership in 2024.

The closures mark the second major round of shutdowns under Niccol. In September 2025, Starbucks closed 627 locations across North America and Europe as part of an effort to improve the company's financial performance and customer experience.

Starbucks Chief Operating Officer Mike Grams said the stores selected for closure either were not generating acceptable income or were failing to provide the experience the company expects for customers and employees.

“While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you,” Grams said in a letter to employees.

Starbucks did not disclose which locations will close or how many of the 250 stores are in the United States. The company also did not say whether unionization played a role in determining which locations would be shuttered.

Starbucks Workers United, which represents employees at about 700 company-owned U.S. locations that have voted to unionize, said 20 unionized stores are among those scheduled to close. The unionization campaign began in late 2021, but the union and Starbucks have yet to reach a labor agreement.

The closures represent a small portion of Starbucks' global footprint. The company had more than 41,000 company-operated and licensed locations across 90 markets as of late June, including 18,371 stores in North America.

The company has also been remodeling its North American locations in an effort to make them more comfortable and appealing to customers. Starbucks expects to have retrofitted about 1,500 stores by the end of September.

Employees at stores that are closing will be transferred to other locations when possible, while workers who cannot be transferred will receive severance pay, according to the company.

Starbucks has also reduced its corporate workforce. About 900 non-retail employees were laid off during the previous round of closures, while another 300 corporate positions were eliminated in May.

Former Starbucks CEO Howard Schultz, who acquired the company in 1987 and helped build it into a global chain, criticized the company's direction in 2024 as revenue declined. Schultz said the company needed to focus more heavily on its U.S. stores and the customer experience, urging senior executives and board members to spend more time interacting with baristas and customers.

“I have emphasized that the company’s fix needs to begin at home: U.S. operations are the primary reason for the company’s fall from grace,” Schultz said. “The stores require a maniacal focus on the customer experience, through the eyes of a merchant.”