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Starbucks to Close 250 US Stores in Turnaround Plan

New York Times Business •
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Starbucks said Thursday it was closing 250 underperforming stores across the country this week. The affected stores, which make up about 1 percent of the company’s 18,000 restaurants in the United States, either did not meet expected customer-experience levels or fell short of financial expectations, Mike Grams, the chief operating officer, said in an announcement early Thursday.

The company will take $300 million in restructuring charges from the closures, related to exiting leases and employee benefits. Other restaurant chains are struggling as consumers reduce their spending, yet 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 under the turnaround plan designed by the chief executive, Brian Niccol, who joined the company in 2024. He has tackled complaints from long wait times to a lack of seating. For the most recent quarter, Starbucks reported sales in North America stores open for at least a year were 8.1 percent higher.