Seattle, WA, September 30, 2025
News Summary
Starbucks plans to close 1% of its stores in North America, affecting about 150 to 200 locations as part of a transformation strategy under CEO Brian Niccol. The changes aim to improve financial performance and customer experience. Additionally, around 900 non-retail partner roles will be cut. The decision follows a 2% drop in comparable store sales, despite a revenue increase. Starbucks is also phasing out pickup-only locations and plans to refresh existing stores.
Seattle, WA – At the end of September, Starbucks announced plans to close 1% of its stores across the U.S. and North America as part of CEO Brian Niccol’s “Back to Starbucks” transformation strategy. The closures, which are expected to affect around 150 to 200 locations nationwide, aim to improve financial performance and the physical environment of stores.
In a memo shared with employees on September 25, Niccol outlined the reasons for the store closures, stating that specific locations would be shuttered if they could not meet the desired business objectives. Employees at the affected locations were informed of the closures on September 26, receiving options to transfer to nearby positions within the company.
In addition to the store closures, Starbucks plans to reduce approximately 900 non-retail partner roles, aligning their efforts with the objective of creating a “better Starbucks.” This initiative appears to be a response to both internal and external challenges, including strikes by employees and ongoing legal disputes related to workplace conditions.
Although the official list of closing stores has not yet been announced, public interest has surged, with a Google sheet tracking potential closures amassing over 500 entries. Discussions surrounding closure details have also generated significant engagement on platforms like Reddit, which featured nearly 400 comments regarding the topic.
Starbucks has indicated that certain locations, particularly in areas like Fort Lee, New Jersey, and Ohio, have already begun displaying letters indicating their impending closures. In Tennessee, only three out of the 250 locations are set to close, specifically within Nashville.
Interestingly, Starbucks plans to phase out its pickup-only locations, currently numbering around 80 to 90, by the end of 2026. Niccol emphasized that these changes are intended to enhance customer service and partner interactions, reinforcing Starbucks’ commitment to customer connection and experience.
Starbucks continues to support digital ordering, which has become a significant portion of their transactions. However, it has experienced a 2% decrease in comparable store sales, despite a reported 3.8% increase in revenue, totaling $9.5 billion in its latest quarterly report. The decision to close underperforming locations is seen as a part of the company’s strategy for sustained growth.
Moving forward, Starbucks expects to operate about 18,300 coffee shops by the end of its fiscal year. This figure reflects approximately 430 fewer locations in the U.S. and Canada compared to previous records. In an effort to enhance customer experience, Starbucks is also set to refresh over 1,000 existing locations.
Despite these strategic moves, Starbucks stock has declined by about 7% this year, reflecting ongoing pressures in the market and challenges facing the company. Niccol has previously expressed intentions to grow the number of coffeehouses in future business plans, indicating a proactive yet cautious approach to navigating the complexities of the business landscape.
FAQ
What percentage of Starbucks stores in North America will close?
Starbucks announced it would close 1% of its stores in the U.S. and North America.
How many jobs will Starbucks cut as part of this initiative?
The company plans to reduce approximately 900 “current non-retail partner roles.”
How many locations does Starbucks expect to have by the end of its fiscal year?
Starbucks expects to have about 18,300 coffee shops by the end of its fiscal year.
What will Starbucks focus on to improve customer interactions?
Niccol emphasized that changes are to focus on enhancing customer and partner interactions.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Commercial Appeal
- Wikipedia: Starbucks
- Tennessean
- Google Search: Starbucks store closures
- WBIR
- Google Scholar: Starbucks closures
- Local Memphis
- Encyclopedia Britannica: Starbucks
- Good Housekeeping
- Google News: Starbucks closures 2025
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