Starbucks will close approximately 250 coffeehouses across North America, announcing the move one week after agreeing to pay Florida $1 million and abandon race- and sex-based employment preferences challenged in a state civil rights lawsuit.
Chief Operating Officer Mike Grams disclosed the closures Thursday in a message to employees, whom the company calls partners.
The affected stores are expected to close later this week and represent approximately 1% of Starbucks’ more than 18,000 locations across the US and Canada.
Starbucks did not identify which locations would close or disclose how many are in the US.
Grams said the company reviewed its North American portfolio and identified stores where it could not consistently provide the experience it wanted for customers and employees or establish a path toward acceptable financial performance.
Although most Starbucks locations are benefiting from the company’s turnaround efforts, Grams acknowledged that some stores continue to underperform.
The closures are part of the company’s “Back to Starbucks” strategy under Chairman and CEO Brian Niccol, who joined the coffee giant in 2024.
Starbucks has been renovating locations, changing its menu and attempting to restore the traditional coffeehouse atmosphere that executives believe helped establish the company’s brand.
The latest announcement marks the second major round of closures under Niccol.
Starbucks closed 627 stores across North America and Europe in September 2025 while eliminating approximately 900 nonretail positions. The company cut another 300 corporate jobs and closed several underused US offices in May.
Starbucks expects to incur approximately $300 million in restructuring charges from the newest closures. That includes $200 million in cash expenses related to exiting leases and providing separation benefits, along with $100 million in noncash charges connected to coffeehouse assets.
The company said affected employees would be offered transfers to nearby locations whenever possible. Workers who cannot be placed at another store will receive severance support.
Starbucks Workers United said 20 unionized locations are included in the latest round of closures. The union represents employees at roughly 700 company-owned US stores that have voted to organize.
The union said it would request additional information from Starbucks and seek bargaining at each affected unionized location.
The closure announcement arrived seven days after Starbucks resolved a lawsuit filed by Florida Attorney General James Uthmeier over the company’s diversity, equity and inclusion policies.
Uthmeier filed the lawsuit in December 2025, alleging Starbucks violated the Florida Civil Rights Act by using race- and sex-based goals, quotas and preferences in employment decisions, per Trending Politics.
The state also accused Starbucks of connecting executive compensation to diversity goals. Starbucks denied wrongdoing.
Under the settlement announced Sept. 17, Starbucks agreed not to use race- or sex-based quotas or preferences in hiring, promotions and compensation. Uthmeier’s office said the agreement applies nationwide.
Starbucks will pay $1 million to the Florida Department of Legal Affairs to reimburse the state for litigation expenses. Its chief legal officer must also certify the company’s compliance annually for four years.
The company additionally agreed not to participate in organizations requiring members to increase racial diversity on their corporate boards.
“DEI can never be an excuse to violate civil rights,” Uthmeier said.
Starbucks did not connect the legal settlement to its decision to close the 250 locations.
