Dubai: Starbucks is preparing to close approximately 250 coffeehouses across North America as the coffee chain continues a broad review of its store portfolio under its “Back to Starbucks” turnaround strategy.
The company announced the decision on September 24, saying the affected locations are stores where it does not see a path to the level of customer experience or financial performance it expects. The closures represent roughly 1 per cent of Starbucks’ more than 18,000 coffeehouses in North America.
Starbucks Chief Operating Officer Mike Grams said the company had reviewed its North American locations individually and identified coffeehouses that continued to underperform despite improvements being made elsewhere in the network. Starbucks said it will begin closing the approximately 250 locations later this week.
Store closures form part of a wider reset
The latest closures are part of the strategy being pursued by Starbucks CEO Brian Niccol, who took over leadership of the company in September 2024.
The strategy focuses on improving the in-store experience, speeding up service and making coffeehouses more welcoming. Starbucks has also been redesigning existing stores as part of its coffeehouse “uplift” programme.
The company said it is accelerating work towards its goal of completing 1,500 coffeehouse upgrades. More than 1,000 locations in the US and Canada had already been redesigned since late 2025, according to a separate Starbucks update issued on September 23.
The company has stressed that the closures do not represent an exit from North America. Starbucks said it remains committed to expanding its presence in the region and is continuing to develop a pipeline of new coffeehouses.
Starbucks lowers its global store-opening target
The restructuring is also reflected in Starbucks’ outlook for new stores.
In a filing with the US Securities and Exchange Commission, Starbucks said it now expects approximately 440 net new global company-operated and licensed coffeehouses in fiscal 2026.
That is below its previous guidance of 600 to 650 net new openings. The company said the reduction reflects the approximately 250 North American closures, partly offset by stronger net new openings in international markets.
The SEC filing also said Starbucks expects approximately $300 million in restructuring charges related to the latest actions. About $200 million is expected to be cash costs, primarily associated with lease exits and employee separation benefits, while roughly $100 million is expected to be non-cash charges related to asset disposal and impairment.
Employees to receive transfers where possible
Starbucks said employees at affected coffeehouses will be supported during the transition.
The company said it will seek transfer opportunities to other Starbucks locations where possible. Employees who cannot be placed at another coffeehouse will receive severance support, according to the company.
The locations selected for closure have not all been publicly identified. The Associated Press reported that Starbucks had not specified how many of the affected stores are in the US or which individual coffeehouses would close.
The latest announcement follows another round of Starbucks closures last year. According to AP, the company closed 627 stores across North America and Europe in September 2025 and eliminated 900 non-retail positions.
What it means for Starbucks customers in the UAE
The latest closure announcement concerns North American coffeehouses, not Starbucks’ UAE network.
Starbucks’ UAE store locator currently lists locations across Dubai, Abu Dhabi, Sharjah, Ajman, Al Ain, Fujairah, Ras Al Khaimah and Umm Al Quwain. The UAE locator lists 241 locations nationwide through the Alshaya-operated network.
Dubai and Abu Dhabi alone account for a large number of listed outlets, with the current Alshaya locator showing 128 locations in Dubai and 63 in Abu Dhabi.
Therefore, the 250 North American closures should not be interpreted as an announcement that Starbucks is closing stores in the UAE. Starbucks has not announced UAE closures as part of this specific September 2026 decision.
The broader strategy instead shows the company trying to reshape its mature North American business while continuing to pursue international growth.
How many Starbucks stores is the company closing?
Starbucks plans to close approximately 250 coffeehouses in North America. The closures represent about 1 per cent of its more than 18,000 North American coffeehouses.
Why is Starbucks closing 250 North American cafes?
Starbucks says the affected locations either do not consistently provide the customer and employee experience it expects or do not have a path to acceptable financial performance.
When will the Starbucks closures happen?
Starbucks said the approximately 250 North American coffeehouses will begin closing later in the week of September 24, 2026, with the majority of closures expected to be completed by the end of fiscal 2026.
How much will the Starbucks restructuring cost?
Starbucks expects approximately $300 million in restructuring charges, including about $200 million in cash costs and $100 million in non-cash charges.
Has Starbucks changed its 2026 store-opening target?
Yes. Starbucks now expects approximately 440 net new global company-operated and licensed coffeehouses in fiscal 2026, compared with its previous guidance of 600 to 650.
Are Starbucks stores in the UAE closing?
The 250 closures announced in September 2026 are in North America. Starbucks’ UAE store locator continues to list outlets across multiple emirates, and the company has not announced UAE closures as part of this specific action.
How many Starbucks locations are listed in the UAE?
The Alshaya Starbucks locator currently lists 241 locations across the UAE, including locations in Dubai, Abu Dhabi, Sharjah and other emirates.
