Starbucks is in the process of closing over 400 stores across North America as part of a major restructuring effort led by CEO Brian Niccol.
Reports indicate that more than 450 locations in the U.S. alone shuttered in late September, with total closures potentially reaching up to 568 company-operated stores when including Canada. This represents about 1% of the company’s North American footprint, which stood at nearly 18,300 locations (company-operated and licensed) in the U.S. and Canada as of late September 2025.
Globally, Starbucks operates over 32,000 stores, so these closures are a relatively small adjustment but part of a broader $1 billion plan to revitalize the brand.
Reasons for the Closures
The decision stems from several challenges:
Underperformance and Shifting Consumer Habits:
Many stores were not meeting customer expectations or generating sufficient profits, exacerbated by post-Covid changes like reduced urban foot traffic and a preference for drive-thru or mobile orders. CEO Niccol noted that mobile ordering had “taken a lot of the soul out of the brand.”
Economic Pressures:
Inflation and higher menu prices have deterred customers, especially those earning under $100,000, with over 70% in surveys planning fewer visits.
Increased Competition:
Rivals like independent artisanal shops (e.g., Blue Bottle, Blank Street Coffee) and drive-thru chains (e.g., Dutch Bros) are gaining ground.
Financial Struggles:
Starbucks has seen declining same-store sales for six straight quarters and a 9% stock drop in 2025.
As part of the restructuring, Starbucks is also laying off about 900 non-retail (corporate) employees, cutting 30% of its menu, ending open-bathroom policies for non-customers, and renovating 1,000 U.S. stores with more seating and power outlets to restore the “third place” vibe.
The company does however, plan to open new stores in fiscal 2026, aiming for growth despite the cuts.
Affected Locations
Starbucks hasn’t released an official full list, but crowdsourced trackers and media reports have compiled details on hundreds of closures, mostly company-operated stores closing on or around late September, early October.
The bulk of these shops are in the U.S., with some in Canada.
To check if a specific store is affected, use the Starbucks app or website, or refer to your local news. Closures have been described as abrupt in some areas, like NYC, leading to employee and customer disruptions.
Even in spite of market saturation, Starbucks expects to maintain it’s growth, with analysts optimistic about the long-term turnaround.
