Starbucks to Close 250 North American Stores, Target $2 Billion in Cost Cuts by 2028

Starbucks in the U.S. has officially announced a new round of restructuring for the North American market, including the closure of 250 underperforming stores. The number represents roughly 1% of the company’s nearly 18,000 stores in North America. CEO Brian Niccol, who has been in the role for two years, has set clear cost-saving targets, with a plan to cut $2 billion in operating costs by 2028.

According to overseas reports, Starbucks will complete the closure process for the 250 low-efficiency stores before the end of fiscal 2026. The restructuring is expected to generate $300 million in one-time charges, adding short-term financial pressure for the group.

In fact, the company already launched a large-scale consolidation last September, closing a total of 627 stores across North America and Europe, with restructuring costs at that time reaching $1 billion.

On the expansion front, Starbucks is tightening its store-growth pace. It now expects a net addition of just 440 company-operated and licensed stores globally in fiscal 2026, a significant reduction from the previous target of 600 to 650. This signals a strategic shift from “rapid expansion” to “refined operations,” with a focus on optimising the quality of existing stores.

At the same time, store renovation work in North America continues. The company plans to complete upgrades at 1,500 stores by September 30 this year, improving in-store environments and the customer experience. On the workforce side, headcount has also been streamlined: 900 non-frontline roles were cut last year, and a further 300 jobs were eliminated in May this year, alongside the closure of several vacant offices.

Of the $300 million restructuring charge, $200 million will be cash outlays for lease terminations and employee severance, while $100 million relates to non-cash losses from asset impairments and disposals. Starbucks currently operates 11,149 stores in North America, a net decrease of 300 compared with the same period last year. Its share price closed at $93.65 on Thursday, down 0.52%.