Starbucks announced Thursday that it will close an additional 250 stores in North America in its latest effort to improve its financial performance.
The company described the closures as aimed at eliminating underperforming locations as it seeks to improve results under the leadership of Brian Nicol, who took over as CEO in September 2024.
"We have carefully reviewed our North American store portfolio and identified locations where we do not believe we can consistently deliver the experience we aspire to for our customers and partners, or where we do not see a path to acceptable financial performance," said Mike Grams, Chief Operating Officer.
Grams noted that these closures represent 1% of Starbucks' total network of 18,000 stores in North America. The latest closures, announced Thursday, follow the closure of hundreds of stores a year ago in North America, coinciding with Nicol's announcement at the time of 900 job cuts.
Nicol, who previously led the Chipotle fast-food chain, is seeking to boost Starbucks' performance in its home market after a period of declining sales.
Nicol has promoted a "green apron service" initiative, which expects baristas to go the extra mile, whether it's offering a "friendly smile, remembering a customer's name, or simply making their day a little better," according to the company's website.
Starbucks had previously planned to open between 600 and 650 stores worldwide this year. However, the company, which operates 41,000 stores globally, stated in a financial filing Thursday that it will open approximately 440 stores in fiscal year 2026.
Starbucks shares fell 1.2% in afternoon trading on Thursday.
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