Starbucks to close 250 North American stores this week

Starbucks announced Thursday that it plans to shutter roughly 250 stores across North America later this week. Mike Grams, the company's chief operating officer, delivered the news in a letter sent directly to its partners. He noted that while the vast majority of its more than 18,000 locations are profitable, a small number have failed to find their footing.

"We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don't see a path to acceptable financial performance," Grams wrote in the statement. "As a result, we will close approximately 250 coffeehouses later this week."

Grams said these closures account for about 1% of the company's footprint in the region. He acknowledged that shutting down any business is never easy and admitted the news would be hard on the partners, customers, and communities involved.

This financial move comes just days after Starbucks settled a high-profile lawsuit with Florida over diversity initiatives. The coffee giant agreed to pay $1 million to the state and promised to stop using race- or sex-based goals and quotas in its employment practices nationwide.

Florida Attorney General James Uthmeier confirmed the settlement covers all operations, not just those inside the Sunshine State. "Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character, not race or sex," Uthmeier told Fox News Digital. He added that this resolution ensures Starbucks complies with state civil rights laws and insisted that diversity efforts can never serve as an excuse to violate those rules.

The lawsuit originally stemmed from allegations filed in December 2025 accusing the company of breaking the Florida Civil Rights Act through specific hiring policies. Under the new agreement, Starbucks must stop participating in organizations that demand it increase board racial diversity. The chief legal officer will also submit annual compliance certifications for four years. Furthermore, the $1 million payment goes to the Florida Department of Legal Affairs to cover expenses related to the case.

These developments highlight a shifting regulatory environment where government directives are forcing major corporations to adjust their internal policies. Whether it is closing underperforming stores or overhauling diversity programs to meet state standards, big businesses must now navigate stricter legal landscapes without room for error.