Jonesing for a triple half caff, no foam iced pumpkin spice protein coffee? Starbucks is the spot, and it turns out some of us may have to start driving further afield for our favorite fix.
Starbucks is shutting down 250 locations in North America as part of a restructuring strategy under CEO Brian Niccol's "Back to Starbucks" plan.
The company says it's focusing on improving the coffeehouse experience for customers and baristas, with plans to complete 1,500 store makeovers by the end of fiscal 2026.
At the same time, the closures, which begin this week, mean the coffee giant is reducing its store count by roughly 1%. Starbucks has not announced the list of closures, but some outlets are compiling their own. SEE IT HERE.
"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," COO Mike Grams wrote to staff.
Starbucks had already started reductions, going from 18,371 locations in North America last quarter, compared to 18,734 stores a year ago.
How has the business world reacted? Yahoo Finance reports that Starbucks posted same-store sales growth of 7.9% -- which was more than the 5.7% growth Wall Street expected.
"William Blair analyst Sharon Zackfia said the store closures could be "modestly beneficial" to same-store sales growth and maintained her Outperform rating on the shares," Yahoo Finance added.
Starbucks stock is up 10% over the past year.
The New York Times reported that while "other restaurant chains are struggling as consumers reduce their spending ...customers have continued to flock to Starbucks for their Pumpkin Spice Lattes and Strawberry Açaí Lemonade Refreshers. Starbucks has reported improved foot traffic and store sales over several quarters under the turnaround plan designed by the chief executive, Brian Niccol."
They added that Niccol, who joined the company in 2024, has "tackled a long list of customer complaints, from long waits for drinks to a lack of seating in cafes."
