Sep 26, 2026
For millions of Canadians, the morning coffee run is a reliable, cherished ritual. Whether it’s grabbing a quick flat white on the way to work, catching up with a friend over a cozy latte or hitting the drive-thru on a cold morning; big brand names or neighbourhood coffee shops, they all hold a warm spot in daily life across the country.
That daily routine faced a moment of uncertainty on Sept. 24 when Starbucks (TSX: SBUX) announced plans to close approximately 250 company-operated coffeeshops across North America. The announcement appears to be part of an ongoing effort to optimize Starbuck’s network and focus on long-term growth.
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To put it in perspective, the closures represent about 1% of the coffee giant’s roughly 18,000 North American company-operated and licensed locations. Whether any Canadian stores are among those shutting down remains unknown, as the company has not publicly disclosed a regional breakdown by country.
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What Starbucks is saying about the closures
Mary Franssen, senior manager of Canada Corporate Communications at Starbucks Coffee Company, told Money.ca that the decision came after taking a close look at how individual stores are serving their communities.
“As ‘Back to Starbucks’ has strengthened the business and improved the customer experience, Starbucks has gained greater clarity about which coffeehouses are positioned for long-term success and where it does not see a viable path forward,” Franssen said. “The approximately 1% of coffeehouses affected by this announcement reflect locations where we do not see a path to delivering the customer experience or long-term performance Starbucks expects.”
Franssen noted that affected stores will post signs over the weekend to let locals know. Coffee lovers can use Starbucks.ca or the company app to find nearby alternatives.
Franssen emphasized that supporting store team members is the top priority, stating that transfer opportunities will be offered “wherever possible” based on local availability and business needs, with severance and transition support provided to partners who cannot be relocated.
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Strategic restructuring and financial impact
The latest closures follow a broader effort over the past year to reshape the brand’s footprint, during which Starbucks shut down underperforming locations in North America, including its flagship Seattle roastery.
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In its regulatory filing Thursday, the company stated that the new round of closures will generate approximately US$300 million in restructuring charges — money that can be reinvested into profitable business lines.
Even with these closures, Starbucks continues to invest in new and refreshed spaces, reporting 60 net store openings year-to-date in Q3 and plans to complete at least 1,500 coffeehouse redesigns by fiscal year-end 2026. However, ongoing global growth has been re-forecast with overall net new global store targets for 2026 scaled back to roughly 440, down from an earlier projection of 600 to 650.
“This is a sensible but costly step in Starbucks’ turnaround,” Lale Akoner, global market strategist at eToro, told Reuters, noting the balance between short-term costs and long-term improvements.
Turnaround efforts under Starbucks CEO Brian Niccol
The shifts come as Chief Executive Officer (CEO) Brian Niccol leads the ”Back to Starbucks” initiative, focused on bringing back the welcoming feel of a classic coffeehouse while streamlining menus and shortening wait times.
In a letter to partners published Thursday, Starbucks Chief Operating Officer (COO) Mike Grams framed the decision around creating spaces that feel right for both guests and staff.
“We’re making this decision for a simple reason: We want every Starbucks coffeehouse to be a place customers love and partners are proud to work,” Grams wrote.
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Part of that strategy involves creating warmer, more comfortable spaces, with over 1,000 location redesigns already completed across Canada and the U.S. under its coffeehouse uplift program.
Despite broader economic pressures, Starbucks recorded four consecutive quarters of comparable sales growth as of July 2026, driven by consistent customer visits across various income brackets, according to Reuters.
Brian Jacobsen, chief economic strategist at Annex Wealth Management, told the newswire that Niccol has demonstrated initial progress with customer momentum, noting that “the next proof point is converting that momentum into stronger margins.”
While Canadian coffee lovers wait to see if their local spot is affected, the core of the morning routine isn’t going anywhere. In the meantime, coffee lovers can rest easy knowing their daily ritual remains intact for now, though company-wide efforts to trim wait times and simplify menus could mean a slightly faster, refreshed experience the next time they reach for their favourite brew.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
