Starbucks Will Close Hundreds of North American Stores By the End of the Fiscal Year

Starbucks, the ubiquitous coffee chain founded in Seattle and frequented by millions of customers looking for a caffeine boost, is closing hundreds of North American stores as part of a major restructuring plan.

Starbucks CEO and Chairman Brian Niccol announced the closures in an update on Thursday, Sept. 25 as the company rolls out its “Back to Starbucks” plan that aims to improve the in-store experience for customers.

Citing the opening of multiple Starbucks locations over the past year, Niccol said the overall number of the company’s stores in North America will decrease by about 1% in fiscal year 2025 after accounting for openings and closures.

Nation’s Restaurant News reported slightly higher figures — a 2.3% drop in the number of stores within a quarter, or a net 1.2% decrease when considering store openings throughout the last two quarters.

“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers,” he continued.

Investopedia reported that around 450 stores have already closed.

During a review of its North American stores, Niccol said that the company had “identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed.”

“We will end the fiscal year with nearly 18,300 total Starbucks locations – company operated and licensed – across the U.S. and Canada,” Niccol said. “In fiscal year 2026, we’ll grow the number of coffeehouses we operate as we continue to invest in our business. Over the next 12 months, we also plan to uplift more than 1,000 locations to introduce greater texture, warmth, and layered design.”

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The company is also terminating hundreds of employees, which it calls “partners.”

“We’re further reducing non-retail headcount and expenses. This includes the difficult decision to eliminate approximately 900 current non-retail partner roles and close many open positions,” Niccol said.

A Starbucks spokesperson did not immediately respond to PEOPLE’s request for additional details about the total number of stores that will close and where they are located.