Starbucks to close 250 North American outlets as part of turnaround plan

Starbucks Corp. said on Thursday that it will close 250 of its North American locations, spanning the United States and Canada, as the coffee chain seeks to reverse a period of stagnant sales and rising costs. The closures will be implemented over the next several months, with the company targeting under‑performing stores in both urban and suburban markets.

The decision forms part of a broader turnaround strategy announced earlier this year, which includes menu simplification, tighter cost controls and a renewed focus on higher‑margin products. Analysts have noted that Starbucks' earnings have been pressured by inflation‑driven wage hikes and a slowdown in discretionary spending.

While the closures are expected to affect thousands of employees, Starbucks said it will offer severance packages and opportunities for internal transfers where possible. The company added that the move aims to strengthen its balance sheet and position the brand for sustainable growth in the competitive coffee‑shop segment.