Starbucks to Close Hundreds of Stores in the US – But Expands in France

Starbucks has announced it will close hundreds of stores across the United States and Canada and cut approximately 900 non-retail positions as part of a sweeping restructuring effort. The plan, part of its new “Back to Starbucks” strategy, aims to refocus resources on high-performing locations, streamline operations, and enhance the in-store customer experience.

Restructuring and Rationale

Under the leadership of CEO Brian Niccol, Starbucks has been reviewing its North American operations and identifying underperforming outlets that can no longer meet company standards or deliver a viable financial return. The chain expects its network of company-operated and licensed stores in the U.S. and Canada to decline by roughly 1%, settling at around 18,300 locations by the end of the fiscal year.

To date, over 450 stores have reportedly been closed, and the company is investing close to $1 billion to cover the costs of the transformation — including staff severance packages, lease terminations, and asset write-downs. Starbucks has emphasized that while closures are difficult, they are necessary to protect the brand’s long-term sustainability and improve customer experience across the remaining store network.

Impact on Employees and Communities

The restructuring will affect hundreds of Starbucks employees. The company has pledged to redeploy staff where possible and to provide severance pay and support for those unable to relocate. Starbucks has acknowledged the emotional and community impact of these decisions, noting that each store closure is considered carefully.

Analysts warn that the closures could also affect local retail ecosystems, as Starbucks stores often serve as economic anchors that draw foot traffic to surrounding businesses. However, many of the targeted outlets are smaller, lower-performing locations or redundant drive-thru formats.

Future Strategy and Challenges

Looking ahead, Starbucks plans to reinvest in its stronger markets, upgrading over 1,000 cafés with refreshed interiors, improved service layouts, and enhanced digital features. The company also intends to improve staffing during peak hours and invest in technologies to streamline order processing and reduce wait times.

Despite this, the restructuring carries inherent risks. The brand’s profitability depends heavily on restoring consistent foot traffic and maintaining its café culture appeal. Analysts caution that if consumers continue favoring fast, convenience-based purchases over in-store experiences, Starbucks could struggle to sustain its traditional business model. The company is also facing renewed labor tensions, as unions challenge aspects of the closure process.

Contrast: Expansion Continues in France and Europe

While the U.S. operation undergoes consolidation, Starbucks is expanding in France and across Europe. The company recently celebrated its 20th anniversary in France, where it operates approximately 250 stores and continues to open new locations in major cities and transport hubs. New cafés have appeared at Paris’ Forum des Halles and along the Champs-Élysées, with additional projects in regional areas.

Starbucks’ French operations have performed strongly in the post-pandemic recovery, driven by robust tourism and enduring café culture. Executives describe France as a “strategic and growing market,” emphasizing continued investments in localized menu innovation, eco-friendly design, and energy-efficient store upgrades. The company also aims to expand its licensed store partnerships throughout Europe to strengthen its footprint in stable, high-margin regions.

This growth in France stands in stark contrast to the North American retrenchment, underscoring how Starbucks is repositioning itself — scaling back in saturated or underperforming markets while deepening its presence in areas with long-term consumer potential.

Conclusion

Starbucks’ decision to close hundreds of North American stores marks one of the company’s most significant restructurings in recent history. Yet, the move also highlights a broader global recalibration — trimming inefficiencies in the U.S. while betting on European resilience, particularly in France. As the company navigates this transition, its success will hinge on balancing operational efficiency with preserving the signature café experience that made Starbucks a household name worldwide.