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Starbucks is set to close 250 underperforming coffee shops across North America as CEO Brian Niccol continues his efforts to turn around the company’s sales, according to a regulatory filing released Thursday.
What is the 4-minute rule at Starbucks?
The Starbucks 4-minute rule is a service goal introduced by Brian Niccol requiring that every custom drink be prepared and handed to a customer in four minutes or less.
According to a report by CTV News, the closures come about a year after Starbucks shut down several struggling locations across the region, including its iconic Seattle roastery, as part of a broader restructuring that was estimated to cost the company roughly US$1 billion.
CTV News contacted Starbucks to ask how many Canadian locations are expected to close, where they are located and how many Canadian employees could be affected. The company did not provide those details.
Read: You can view a running log of reported shutdowns across regions here
Starbucks said the latest round of closures will result in approximately US$300 million in restructuring charges and affect about 1 per cent of its roughly 18,000 North American locations. The company expects to complete most of the closures by the end of its 2026 fiscal year.
Starbucks now expects to open about 440 net new company-operated and licensed coffeehouses globally in fiscal 2026, down from its previous forecast of 600 to 650 new locations.
Niccol marked two years as Starbucks CEO in September. The former Chipotle Mexican Grill executive has been working to win customers back in the U.S. through shorter wait times and simplified menus as part of his “Back to Starbucks” turnaround strategy.
The report continues to detail that the company has also invested in its stores and kitchen operations while cutting costs through corporate job reductions and the closure of some regional offices.
What is replacing Starbucks in Canada?
The Canadian coffee chain Good Earth Coffeehouse is expanding to take over many former Starbucks locations across Canada
As of July, Starbucks had reported four consecutive quarters of comparable sales growth. Customer traffic had also increased across all income groups, Niccol said in April.
The company’s higher-priced lattes have remained relatively resilient despite a broader pullback in discretionary spending, particularly among lower-income U.S. consumers facing elevated food and fuel costs.
For more information about the report by CTV News, click here.
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