Starbucks has announced plans to close approximately 250 stores across North America. Company Chief Operating Officer Mike Grams revealed the upcoming closures on Thursday.
Most of the company's 18,000 North American coffeehouses remain profitable. However, leadership identified a small portion of struggling locations during a recent portfolio review.
Starbucks plans to close hundreds of cafés across North America this week, the latest move under Chief Executive Brian Niccol to streamline and boost the profitability of its operations https://t.co/46FZnSquu8
— The Wall Street Journal (@WSJ) September 24, 2026
"We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance," Grams said in a statement.
The closures will affect roughly 1% of the brand's total North American footprint. Affected stores are scheduled to shut their doors later this week.
"Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected," Grams added.
The announcement follows major corporate news regarding a recent legal settlement in Florida. Starbucks agreed to resolve a high-profile diversity, equity, and inclusion lawsuit late last week.
Under the sweeping settlement terms, Starbucks will pay $1 million to the state. The coffee giant also agreed to eliminate race- and sex-based goals, quotas, and preferences across its nationwide employment practices.
Florida Attorney General James Uthmeier confirmed the agreement applies to all operations across the country. The resolution concludes a lawsuit filed in December 2025 under the Florida Civil Rights Act.
"Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character — not race or sex," Uthmeier stated. He emphasized that diversity programs can never excuse violations of civil rights laws.
The agreement prohibits race- and sex-based preferences in hiring, promotions, pay, and supplier selection. Starbucks also pledged to withdraw from organizations requiring racial diversity quotas for corporate boards.
The company's chief legal officer must submit annual compliance certifications for the next four years. Additionally, Starbucks will reimburse the state for legal expenses stemming from the litigation.