Starbucks Announces Closure of 400 Underperforming US Stores
Starbucks will close 400 underperforming US locations as part of a strategic restructuring plan. The coffee giant is shifting focus to drive-through and mobile pickup formats while reducing its urban footprint.
Starbucks restructures US store network
Strategic Closures
Starbucks will close 400 stores by mid-2026, representing about 4% of its US locations. The closures target urban stores with declining foot traffic and high labor costs, particularly in downtown areas still recovering from remote work shifts.
CEO confirmed that most affected employees will be offered transfers to nearby locations or severance packages.
Format Evolution
The company is investing heavily in drive-through and mobile pickup formats, which now account for 75% of US orders. New store openings will prioritize suburban locations with drive-through access.
Starbucks is also piloting smaller-format pickup-only stores in select markets.
Market Response
Investors reacted positively to the restructuring announcement, with shares rising 5% on news of improved efficiency targets. The company expects $200 million in annual savings from the closures.
Starbucks to close 400 US stores, focus on drive-through and mobile orders, boosting efficiency and shares by 5%.
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