Starbucks Closing 250 Stores Days After $1 Million DEI Settlement in Florida
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.
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.
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.
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.
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