Starbucks announced Thursday it will close about 250 coffeehouses across North America later this week, calling the move a “difficult decision” after reviewing locations that it says cannot consistently deliver the experience it wants or a path to acceptable financial performance.

The closures represent about 1% of the company’s more than 18,000 North American stores. Most locations remain profitable, Chief Operating Officer Mike Grams said in a letter to employees, known internally as partners.

We interviewed Starbucks customer Kimberly Goldberg of Woodstock, who said coffee is her morning go-to. “Oh no,” the San Diego native said. “I hope they don’t close the one I go.”

Starbucks To Close 250 Stores

The company expects about $300 million in related charges and is lowering its fiscal 2026 net new store outlook to roughly 440 from a previous target of 600 to 650.

Grams said the company is speaking directly with affected partners and will offer transfers where possible, plus severance for those who cannot be placed nearby. Customers at closing shops will be directed to nearby stores.

What this means in Atlanta

Starbucks has not released a list of the stores closing this week, so it is not yet clear whether any metro Atlanta locations are included. Local customers should check the Starbucks app or website for sudden hours changes or closures.

The news lands in a market that has already seen several Starbucks changes. In September 2025, three Atlanta stores closed as part of an earlier restructuring: the location on the lower level of the Equitable Building at 100 Peachtree Street downtown, 21 14th Street, and 1870 Piedmont Avenue in Piedmont Heights. An Ansley Mall store at 1544 Piedmont Road also closed earlier after its lease expired.

In May 2026, Starbucks separately closed its Atlanta regional support office and other underused offices in cities including Dallas and Chicago, affecting about 300 corporate roles in marketing, human resources, and similar functions. Coffeehouse staff were not part of that cut.

Metro Atlanta still has a large Starbucks footprint—dozens of cafes across the city and suburbs, with some location trackers listing 50-plus stores in Atlanta proper. Georgia overall has hundreds of locations. Atlanta is also among the markets where Starbucks has been expanding store “uplifts,” the renovations meant to make cafes cozier and more inviting as part of CEO Brian Niccol’s “Back to Starbucks” plan. The company says it is on track to complete 1,500 such upgrades by the end of its fiscal year on Sept. 30.

The bigger picture

This is the second major wave of closures under Niccol, who joined in 2024. Last year the company shuttered hundreds of North American and European stores. The latest review, Grams said, followed improved visibility into which shops are benefiting from faster service, warmer interiors, and the Green Apron Service standard—and which are not.

The original Fox Business report also noted that the announcement came days after Starbucks resolved a Florida DEI lawsuit with a nationwide agreement. That settlement is separate from the store-portfolio decision.

For Atlanta regulars, the practical takeaway is simple: this week’s closures are happening quickly, specific local addresses have not been published, and the company says it still plans to grow in North America even as it prunes underperforming shops. Check nearby locations if your usual stop suddenly goes dark.

LAYOFFS AND STORE CLOSURES