Starbucks to close stores, restructure operations under $1 billion plan

Starbucks Corporation (NASDAQ: SBUX) announced a restructuring plan involving coffeehouse closures and organizational changes as part of its "Back to Starbucks" strategy, according to a company statement.

The company's board approved the plan on September 23, 2025, which includes closing stores that do not meet criteria for brand-consistent physical environments and financial performance targets. The restructuring also involves changes to the company's support organization.

Starbucks expects to complete most store closures by the end of the current fiscal year. The company estimates total costs of approximately $1 billion for store closures, support organization transformation, and other restructuring activities, with 90% of expenses attributed to its North America business.

The company anticipates incurring a significant portion of these charges in fiscal year 2025. The restructuring costs break down to approximately $150 million for employee separation benefits, $400 million for disposal and impairment of company-operated store assets, and $450 million primarily for accelerated amortization of right-of-use lease assets and other lease costs from early store closures.

Of the total restructuring charges, Starbucks estimates approximately $400 million will be non-cash charges related to asset impairment and disposal. The remaining $600 million represents future cash expenditures for employee separation benefits and lease exit costs.

The restructuring forms part of the company's strategy to focus investment closer to coffeehouses and customers while building what it describes as a stronger operational foundation.

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