News Summary
Starbucks has announced a plan to close around 180 coffeehouses in North America as part of its ‘Back to Starbucks’ initiative. This restructuring will also result in approximately 900 job eliminations. The decision aims to enhance customer experiences while maintaining financial performance. Despite the closures, Starbucks intends to continue its growth strategy, planning to invest in new locations with redesigned interiors aimed at improving the overall atmosphere for patrons.
Washington – Starbucks has announced plans to close approximately 180 of its coffeehouses in North America, marking a 1% reduction in its locations. This restructuring initiative, named the “Back to Starbucks” initiative, was revealed by CEO Brian Niccol on September 25, 2025, and will also result in the elimination of around 900 jobs across the company.
The closures are a response to challenges in maintaining expected customer experiences and viable financial operations at certain locations. Stores identified for closure will be informed within a week of the announcement, as Starbucks aims to enhance the overall atmosphere within its coffeehouses.
Once the closures take effect, Starbucks will conclude the fiscal year 2025 with an estimated 18,300 coffeehouse locations in the U.S. and Canada after accounting for both new openings and closures. Despite the closures, Starbucks remains committed to growth; in fiscal year 2026, the company plans to invest in over 1,000 locations featuring redesigned interiors intended to elevate customer experiences.
Starbucks previously announced a closure of 90 mobile-only stores in July 2025, affecting two locations in Florida. As of that same month, Florida was home to 934 Starbucks stores, ranking third in the U.S. for the total number of locations. The current restructuring effort underscores the company’s strategic pivot to prioritize its community coffeehouses while enhancing the experience of the mobile order and pay service, which represents a significant 31% of its transactions.
The restructuring efforts extend beyond store closures, as Starbucks will also reduce its non-retail workforce, leading to the elimination of approximately 900 non-retail partner roles and the halt of open job positions. Employees affected by these changes will be notified on September 26, 2025, and will be provided with severance packages that include extended health benefits. Where possible, the company aims to offer job transfer opportunities for employees unable to retain their positions.
Starbucks has reported positive outcomes from earlier investments in store enhancements, noting an increase in customer visits and engagement following these upgrades. However, the company has decided to phase out its “Pickup” store model, initiated in 2019, by 2026, as it has proven incompatible with Starbucks’ broader goals for customer engagement and overall brand strength.
As part of its ongoing strategy to prioritize long-term growth while effectively managing costs, Starbucks is refining its operational approach. The anticipated changes are being implemented with the hope of creating more inviting spaces for patrons, aiming to foster an environment conducive to increased customer loyalty and satisfaction.
In summary, Starbucks’ current restructuring plan reflects a commitment to adapting to market conditions while striving for improved customer experiences. The necessary adjustments will have significant implications for its operational landscape as the company seeks to maintain its status as a leading coffeehouse chain in North America.
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