World · Singapore Bureau
Starbucks set to shutter 250 North American outlets in fresh restructuring
The global coffee chain is accelerating store closures in North America as it contends with shifting consumer habits and operational challenges. The latest round of shutdowns follows a wave of store exits last year.
LSN Singapore ·
Starbucks is preparing to close approximately 250 coffeehouses across North America, marking another significant phase in the company's ongoing portfolio restructuring in the region. The decision reflects the Seattle-based chain's efforts to streamline operations and respond to evolving market dynamics.
The closure announcement comes roughly a year after Starbucks shuttered a substantial number of underperforming locations in the same geography. That earlier wave of exits signalled a broader shift in the company's strategy as it reassesses its physical footprint amid changing consumer behaviour and labour pressures.
Starbucks has attributed previous closures to various factors including elevated operating costs, staffing challenges, and shifting patterns in how customers access coffee products. The company has increasingly invested in delivery options and alternative formats to offset declines in traditional café traffic.
The scale of the latest planned closures underscores the pressure facing major quick-service restaurant operators in North America, where foot traffic has remained inconsistent and labour expenses have climbed significantly. Starbucks has indicated that it will prioritise certain markets and store formats as part of its recalibrated approach to the region.
The company is expected to provide further details about which locations will be affected and the timeline for the closures in coming weeks.