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Starbucks is shutting down approximately 250 coffeehouses across North America this week, the company confirmed in an internal memo from Chief Operating Officer Mike Grams that was later shared publicly. The closures amount to roughly 1% of Starbucks' more than 18,000 North American locations.
In the letter, addressed to Starbucks "partners" (employees), Grams said the company had completed a thorough review of its coffeehouse portfolio and identified stores where it didn't see a realistic path to the experience — or the financial performance — it wants for both customers and staff. He stressed that closing and opening locations is a routine part of managing the chain's footprint, and that Starbucks remains committed to long-term growth in North America, with a "strong pipeline" of new coffeehouses still in development.
The timing comes as Starbucks says its North America business has rebounded, citing faster service, more consistent café experiences, and its new "Green Apron Service" standard as signs the company's two-year "Back to Starbucks" strategy is paying off. Grams noted the chain is also accelerating a plan to renovate 1,500 existing coffeehouses. Even so, he acknowledged that some locations have continued to underperform despite employees' efforts.
Workers at the affected stores will be offered transfer opportunities to other Starbucks locations where possible, and severance support for those who can't be relocated. Grams personally thanked impacted staff for their contributions, while the company said it plans to redirect regular customers to nearby coffeehouses to preserve their routines.
The store-closure news arrives just days after Starbucks resolved a Florida lawsuit alleging the company used race- and sex-based quotas in hiring and promotion decisions. Under that settlement, Starbucks agreed to drop such practices nationwide, pay $1 million to the state, and submit to years of compliance certification — adding another layer of scrutiny to a company already navigating a broader operational shake-up.
Starbucks has not disclosed the specific locations slated for closure, but says communications with affected employees and communities are already underway.
