The coffee chain is shifting its operational focus toward high-potential retail locations to improve margins across its fleet. Starbucks will shutter 250 underperforming stores and take a $300M restructuring charge, with the majority of the closures scheduled to be completed by the end of FY26.

These shutdowns affect approximately 1% of the company's 18,000 sites in the United States and Canada. The cuts are the latest move by Chief Executive Brian Niccol to streamline the organizational footprint and boost the overall profitability of North American operations.