SEATTLE, September 24 — Starbucks is closing about 250 stores, the Seattle-based coffeehouse chain said, a round of cafe closures that amounts to a small fraction of a global footprint spanning more than 38,000 locations worldwide as of 2024. The bottom line: the figure that matters here is scale. Against more than 38,000 stores across more than 80 markets, roughly 250 closures is a rounding error on the map — but it is the largest single pruning round the company has announced in recent years.
Starbucks has periodically trimmed its store base. In 2018, the company announced it would close about 150 underperforming company-operated stores in the United States — a figure that grew to roughly 200 by the end of that fiscal year.
In 2022, it announced closures in response to safety concerns and changing traffic patterns. The latest round continues that pattern. The company said the closures are expected to affect both company-operated and licensed stores, though the exact mix has not been detailed.
Starbucks has not specified which markets or regions will be most affected, and has provided no timeline beyond the current round. By the numbers, the store base breaks down this way as of 2024: approximately 16,000 company-operated stores in the United States, about 18,000 internationally, with the remainder licensed.
China, Starbucks’ second-largest market, has more than 6,000 stores.
What’s behind the closures
Starbucks has pointed to shifting consumer habits, urban foot traffic changes, and a strategic review of underperforming locations. The company has also faced rising labor costs and unionization efforts at some U.S. stores, along with changing consumer behavior post-pandemic. At the same time, Starbucks has been investing in store remodels, drive-thru enhancements, and digital ordering capabilities.
Its loyalty program remains one of the largest in the restaurant industry, with more than 30 million active U.S. members as of 2024. Long-term growth plans include new store formats such as pickup-only locations and smaller-format cafes.
The financial backdrop: net revenues of $35.9 billion for fiscal year 2023 and $36.2 billion for fiscal year 2024. The company’s fiscal year ends in late September or early October. Starbucks trades on the Nasdaq under the ticker SBUX.
Leadership and history
Starbucks was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker in Seattle’s Pike Place Market in 1971. Howard Schultz joined in 1982 and later led its expansion as CEO. The company went public in 1992.
Laxman Narasimhan served as CEO as of 2024, having taken the role in March 2023. In August 2024, the company announced that Brian Niccol, formerly CEO of Chipotle Mexican Grill, would become chairman and CEO, effective September 9, 2024.
What to watch next: whether Starbucks details the company-operated versus licensed split, names the affected markets, or sets a timeline for the closures.
