Executives at the Seattle based coffee giant are shifting the company's real estate strategy to prioritize high potential markets. Starbucks will shutter 250 underperforming outlets across the United States and Canada starting this week, a move that results in about $300M in restructuring costs. The company will complete the bulk of these closures by the end of FY26.

Chief Executive Brian Niccol is streamlining operations to increase overall margins and efficiency. The reduction in the North American footprint removes low performing sites to optimize the chain's network of roughly 18,000 locations.