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Starbucks to close about 250 underperforming North America stores

The closures represent roughly 1% of Starbucks' 18,000-plus North American locations, and the company expects about $300 million in restructuring charges.

Reported · Written up by our desk · Industry

Starbucks plans to close about 250 underperforming locations in North America this week, according to an open letter to employees shared Thursday by the coffee chain.

The company said the shutdowns amount to roughly 1% of its 18,000-plus North American footprint, and it attributed the decision to a review of its portfolio where it does not see a path to acceptable financial performance.

Starbucks also said it expects to open net about 440 new locations this year, mainly in international markets, which is below its prior outlook of 600 to 650.

In connection with the store closures, Starbucks expects about $300 million in restructuring charges, including roughly $200 million for early lease exits and employee separation costs, Bisnow reported.

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