The board of directors of Starbucks Corp. has approved the closure of hundreds of stores in the United States as part of its “Back to Starbucks” strategy. No locations had been announced as of Sept. 24.
In a report given to the United States Securities and Exchange Commission on Sept. 22, the company stated the “Back to Starbucks” strategy focuses on revitalizing coffeehouses, enhancing the customer experience, and strengthening the company’s coffeehouse portfolio.
“As part of that strategy, the company further assessed its existing North America store portfolio and will close approximately 1 percent of its more than 18,000 North America coffeehouses that do not deliver the coffeehouse experience and financial performance expected of the brand. The company expects the majority of the coffeehouse closures will be completed by the end of fiscal year 2026 with a significant portion of the associated cash and non-cash charges incurred in fiscal year 2026. Of the approximately $300 million of restructuring charges to be incurred, the company anticipates that approximately $200 million will be cash charges primarily related to lease exit costs and employee separation benefits. The remaining $100 million will be non-cash charges due to disposal and impairment of company-operated coffeehouse assets.”
In its disclosure statement to the SEC, the company said it expects that full fiscal year 2026 net new global company-operated and licensed coffeehouse openings will be approximately 440, compared with its prior guidance of 600 to 650 net new openings.
“This is based on approximately 250 closures in North America as part of today’s announcement, partially offset by higher net new coffeehouse openings across the company’s international markets,” the report reads. “The company continues to see significant longer-term growth opportunities ahead in North America and is actively developing a strong pipeline of new coffeehouses.”
