BURBANK — The planned closures represent approximately 1% of Starbucks' roughly 18,000 North American locations. At the end of June, the company reported having 18,371 stores in the region. Starbucks expects to incur about $300 million in restructuring charges related to the closures, with approximately $200 million designated as cash charges for exiting leases early and paying employee separation benefits. The remaining $100 million will consist of non-cash charges from the disposal and impairment of company-owned assets.

Starbucks Chief Operating Officer Mike Grams stated in a letter to employees that the company identified locations where it does not believe it can consistently deliver the desired experience or see a path to acceptable financial performance. He said the company plans to transfer employees to other stores if possible or provide severance support if placement is not possible.

Specific locations identified for closure include the Starbucks next to Bob’s Big Boy on Riverside Drive in Burbank, California, which will close permanently at 9:30 p.m. on Saturday after nearly 30 years in business. Locals have referred to the location as “Bobbucks” due to its proximity to the restaurant. KCRA 3 confirmed that Saturday will also be the last day in business for Starbucks locations at 10441 Fairway Drive in Roseville, and at 2648 Watt Avenue, 3511 Truxel Road, and 8240 Calvine Road in Sacramento. The Starbucks at 1205 The Alameda in San Jose is expected to close on Saturday, with the next closest location situated 0.7 miles away.

A spreadsheet compiled by a Starbucks fan known online as Winter identified 36 locations in Southern California likely to be among the closures, based on stores listed as closed for the coming week in the company’s app. Bay Area locations expected to close include those in Lafayette, Walnut Creek, South San Francisco, Santa Rosa, San Carlos, Millbrae, Mountain View, Hercules, Concord, and Gilroy. A Starbucks spokesperson stated that no Wyoming locations will be affected by the closures, noting there are 11 stand-alone locations across the state.

Starbucks Workers United stated that 20 unionized stores are among the 250 closing, representing 8% of the total. More than 700 U.S. Starbucks stores have voted to unionize since late 2021. The union said it is sending a formal request for information to Starbucks about the planned closures and will engage in bargaining at every unionized store.

Despite the closures, Starbucks reported strong recent financial performance. Global comparable sales increased 7.9% in fiscal Q3, while North American comparable sales rose 8.1% during the same period. North American transactions increased 4.5% in fiscal Q3, and the operating margin stood at 12.9%.

The company has spent at least $500 million on labor investments as part of its turnaround and has completed more than 1,000 store renovations over the past nine months. Starbucks plans to complete renovations on 1,500 or more stores by the end of fiscal 2026 and intends to spend about $1 billion to remodel up to 9,000 company-operated North American locations. Management targets an operating margin of up to 15% by fiscal 2028 and annual earnings per share of $3.35 to $4. Starbucks shares fell less than 1% on Thursday in afternoon trading, though the stock is up 11.7% over the past year. The company also orchestrated the sale of 60% of its retail operations in China to a private equity firm in a deal valued at $4 billion.

San Jose State University economist Robert Chapman Wood stated that the bond with customers was somewhat lost when Starbucks founder Howard Schultz retired. He said the relationship between staff and customers across thousands of stores is not something that can be taught academically. He added that Starbucks depends on creating an atmosphere people choose to visit, rather than just producing coffee, because other places produce coffee for less money than Starbucks.

Why It Matters

The closure of 250 stores represents a continued strategic shift for Starbucks under CEO Brian Niccol, following the closure of 627 locations in September 2025. This move aligns with the company's goal to improve financial performance and customer experience, even as it reports rising comparable sales and transaction growth in North America. The restructuring involves financial commitments, including $300 million in charges and a $1 billion renovation plan for thousands of existing stores.

The impact extends to employees and unionized workers, with 20 unionized stores included in the closures. Starbucks Workers United is seeking information and bargaining rights regarding the impact on these locations. While the company aims to transfer affected employees or provide severance, the closures reflect ongoing tensions between operational efficiency and labor relations. The reductions also affect local communities, as seen in the closure of long-standing locations like the Burbank store that operated for 30 years.

Timeline

Starbucks CEO Brian Niccol joined the company in 2024. In September 2025, Starbucks laid off 900 nonretail employees when it closed stores last September. Also in September 2025, Starbucks closed 627 stores in North America and Europe last September.

In May 2026, Starbucks laid off an additional 300 corporate employees in May. At the end of June 2026, Starbucks had 18,371 stores in North America at the end of June. In fiscal Q3 2026, Starbucks North American comparable sales rose 8.1% in fiscal Q3. During the same period, Starbucks North American transactions increased 4.5% in fiscal Q3. Also in fiscal Q3 2026, Starbucks global comparable sales increased 7.9% in fiscal Q3.

What's New

Additional reporting provides further detail on the company's performance and rationale. Starbucks Chief Officer Grams stated in a letter to employees that the company identified locations where it does not believe it can consistently deliver the desired experience or see a path to acceptable financial performance.

Robert Chapman Wood said Starbucks depends on creating an atmosphere people choose to visit, rather than just producing coffee, because other places produce coffee for less money than Starbucks. The Riverside Drive Starbucks in Burbank, California, opened in 1996 and operated for 30 years before its closure in 2026. The next closest Starbucks to the San Jose location at 1205 The Alameda is 0.7 miles away. Starbucks Chief Officer Grams cited financial underperformance and inability to deliver desired customer experiences as reasons for the 2026 closures, aligning with similar language used in the 2025 restructuring. Starbucks closed 627 underperforming stores globally in September 2025, including its iconic Seattle roastery, as part of a $1 billion restructuring initiative.

How Sources Differ

Sources present different figures regarding North American performance and scale. The Starbucks regulatory filing states that the 250 planned closures represent approximately 1% of Starbucks' roughly 18,000 North American locations.

There are also differences in data regarding North American transaction growth and store count. The Starbucks earnings report states that Starbucks North American transactions increased 4.5% in fiscal Q3.

Sources differ on North America store count and prior closures.

Details regarding the next closest Starbucks distance vary by location. Marla Seraphine stated on X that the next closest Starbucks to the closing Riverside Drive location sits inside an office building with an indoor courtyard and less natural light.

Sources provide different details on North American locations and renovation plans. The Starbucks corporate announcement states that Starbucks plans to spend about $1 billion to remodel up to 9,000 company-operated North American locations.

There are gaps in details regarding North America closure announcement and total store count. The Starbucks regulatory filing states that Starbucks announced it will close approximately 250 underperforming stores in North America later this week.

Sources differ on North America current and prior closures.

There are differences in details regarding North America closure announcement and historical context. Newsdata states that Starbucks has closed more than 600 stores in North America and Europe prior to the announcement of the 250 new closures.