Official: Starbucks is closing hundreds of locations

“Starbucks actively developing a strong pipeline of new coffeehouses and remain committed to growth.”

COO Mike Grams in a letter to employees

The 250 stores that will be shut down represent just one per cent of Starbucks’ footprint in North America. The coffee chain boasts more than 18,000 locations across Canada, the US and Mexico. CEO Brian Niccol hopes that this restriction can bring Starbucks back on the path of growth. In North America, Starbucks has already begun café renovations and a simplified menu. According to court filings in the US, Starbucks will incur $300 million in charges related to the store closings, $200 million of which will be used to pay out laid-off employees.

We remain excited about the significant long-term growth opportunity ahead in North America

COO Mike Grams in a letter to employees

While Starbucks is closing 250 locations, it will be opening significantly more new shops. Still, the number is less than the company claimed it would be earlier in 2026. Starbucks claimed that it would be opening 600 to 650 new locations globally across this fiscal year, but the actual number will be significantly less. According to reports from CNN, Starbucks is forecasted to open just 440 new locations this fiscal year, nearly 33 per cent less than it initially planned.

According to earnings reports from Starbucks, its sales returned to growth about a year ago. Same-store sales across US-based locations jumped 7.9 per cent during the company’s most recent quarter, propelling the company back into the growth column. Niccol touched on the figure, claiming that it wasn’t until July of 2026 that Starbucks could formulate a long-term plan, and that the July earnings report ‘was the quarter our momentum became truly measurable’.

“[Q3] was the quarter our momentum became truly measurable.”

Starbucks CEO Brian Niccol

There are multiple reasons that Starbucks locations in North America have stopped being fiscally stable. One is cultural and political in nature. Across major urban areas in North America, social groups have been calling for the mass boycotting of Starbucks. The company is deeply entrenched with the American government and has been linked to Israel, a government that has been charged with genocide by the UN, UNRWA, UNICEF, and every other major humanitarian organization in the world, prompting many to take their hard-earned money elsewhere.  While Starbucks has no official connection with Israel, advocates point to its language surrounding the genocide in Gaza, and Starbucks’ deep relationship with US lawmakers who continue to fund Israel.  

There is also Starbucks ‘ history with union-busting, and its historical treatment of queer and bipoc employees and customers. The company has faced hundreds of unfair labour practice complaints filed with the National Labour Relations Board (NLRB) regarding union-busting and retaliatory firings. Starbucks’ union-deterring strategies became so apparent in spring 2026 that the United Nations commented on the issue, stating that Starbucks’ threats and treatment of unionizing employees were so dire that they may constitute human rights violations that the US government should examine. Starbucks employees have been posting proof of management abuse for nearly ten years across social media platforms, with workers of racialized or discriminated backgrounds being targeted specifically.

All of these controversies have resulted in Starbucks becoming a figurehead for the evils of capitalism and consumerism. The company’s blatant abuse and disrespect of both its employees and its customers have become common knowledge amongst Generation Z, Millennials, and Generation Alpha, and the company has been suffering. Starbucks’ social media presence is a shell of what it once was, with its comment sections being filled with harsh criticism, and it’s now rare to see a new media outlet post anything positive about the caffeine conglomerate. While Starbucks is still pulling in money hand over fist, the company lacks the confidence that it had for more than a decade in North America. Starbucks is no longer untouchable, and it’s feeling the effect of its past actions.