Starbucks announces restructuring plan involving closure of coffeehouses

In a regulatory filing, the company said, “On September 23, 2025, the Board of Directors of Starbucks (SBUX) approved a restructuring plan involving the closure of coffeehouses, and the further transformation of the company’s support organization, as part of the company’s ‘Back to Starbucks’ strategy. The ‘Back to Starbucks’ strategy focuses on revitalizing coffeehouses and enhancing the customer experience. As part of this strategy, the company assessed its existing store portfolio with respect to both whether coffeehouses had a viable path to offering the physical environment consistent with the brand and a clear path to financial performance. It will close those coffeehouses that do not meet these criteria. As the company works to build a stronger and more resilient Starbucks and prioritizes investment closer to the coffeehouse and the customer, the company is also further restructuring its support organization. The company expects that a majority of the store closures will be completed by the end of this fiscal year. The company estimates that it will incur approximately $1 billion related to the store closures, support organization transformation, and other restructuring activities, with 90% of the expenses attributable to the North America business. The company further expects that a significant portion of these charges will be incurred in fiscal year 2025. Of the total restructuring charges incurred, the company estimates a breakdown of approximately $150 million related to employee separation benefits, approximately $400 million related to the disposal and impairment of company-operated store assets, and approximately $450 million primarily associated with accelerated amortization of ROU lease assets and other lease costs due to store closures prior to the end of contractual lease terms. These restructuring charges will result in estimated non-cash charges of approximately $400 million related to asset impairment and disposal with the remaining estimated costs being future cash expenditures of approximately $600 million related to employee separation benefits and lease exit costs.”