Starbucks to Close Another 250 Cafes in North America

Starbucks is planning to close another 250 cafes in North America. These are locations that no longer generate sufficient profit for the company.

Most of the cafes will close by the end of fiscal year 2026. The costs associated with the changes will reach approximately $300 million. These locations account for about 1% of Starbucks' roughly 18,000 cafes in North America.

The company has also scaled back its plans for opening new cafes. Starbucks now plans to open about 440 new locations worldwide, compared to its earlier expectation of adding 600 to 650 new cafes.

Brian Niccol has led Starbucks for two years. His "Back to Starbucks" plan includes simplifying the menu in the US, reducing order preparation times, and improving in-store service.

To cut costs, the company has also eliminated several corporate positions and closed some regional offices.

Source: Reuters