A wave of cafe shutdowns will hit the United States and Canada later this week as the company removes assets that no longer meet its profitability targets. Starbucks announced on Thursday that it will close approximately 250 locations, which represent about 1% of its more than 18,000 stores in the region. The operation carries roughly $300 million in restructuring charges, and Chief Operating Officer Mike Grams stated that the sites failed to deliver acceptable financial results or the desired customer experience.

The closures are the second round of reductions in North America during the two year tenure of Chief Executive Brian Niccol. To further streamline operations and reduce overhead, the firm also cut 300 corporate jobs and shut down several underused U.S. offices in May. Most of the current store closures will be completed by the end of fiscal year 2026.