Starbucks will close more than 18,000 stores and cut around 900 jobs as part of a US$1 billion restructuring plan led by CEO Brian Niccol.

The company’s North American store count will drop by 1% in its 2025 fiscal year, resulting in 18,300 locations across the US and Canada by year-end.

Starbucks said the closures target outlets that are not profitable after a review of its coffeehouses.

The company also plans to refurbish 1,000 stores and is reducing menu complexity to speed up service and shift toward items that fit current consumer preferences.

This move comes after six consecutive quarters of falling same-store sales and continued competitive pressure from smaller, faster, and cheaper rivals in the United States and China.

Starbucks’ Q3 sales and profits missed analyst expectations, and its stock is down 8% for the year, compared to a 13% rise in the S&P 500 Index.

🔗 Source: Bloomberg

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