Starbucks announced plans to close approximately 250 stores across North America. [1] Company Chief Operating Officer Mike Grams revealed the decision, explaining that while most of their 18,000 North American stores remain profitable, a small fraction has struggled to meet financial and customer experience goals.
Profitability
The closures represent about 1% of the company’s total footprint in the region. Grams indicated the company reviewed its entire North American portfolio to identify locations lacking a clear path to acceptable financial performance.
“Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected.”
“Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected,” Grams stated in a public letter.
Legal Action
This operational shift comes just days after the coffee giant resolved a major lawsuit regarding its employment practices. [2] Last week, Starbucks reached a settlement with the state of Florida, agreeing to pay $1 million and end the use of race- and sex-based goals, quotas, and preferences in its hiring and employment practices.
Florida Attorney General James Uthmeier confirmed the agreement applies to all Starbucks operations nationwide, not just those located in Florida.
“Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character — not race or sex,” Uthmeier stated regarding the settlement.
“Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character — not race or sex.”
The settlement ends a lawsuit originally filed by Uthmeier in December 2025. The suit accused Starbucks of violating the Florida Civil Rights Act through diversity, equity, and inclusion (DEI) policies that the state argued amounted to racial and sex-based quotas in the workplace.
Under the new agreement, Starbucks committed to strict compliance with state civil rights laws. These laws prohibit preferential treatment based on race or sex in areas such as hiring, promotions, executive pay, and supplier selection. The company also agreed to stop participating in organizations that require members to increase the racial diversity of their board of directors.
To ensure ongoing adherence to the settlement terms, Starbucks’ chief legal officer will be required to submit annual compliance certifications for the next four years. The $1 million payment to the Florida Department of Legal Affairs is designated to reimburse the office for the time and expenses incurred while bringing the case.
Notes:
- ^Grams, M. (2026). Creating Coffeehouses Customers Love and Partners are Proud of – Starbucks Stories & News. Starbucks. Retrieved from https://about.starbucks.com/press/2026/creating-coffeehouses-customers-love-and-partners-are-proud-of/ (go back ↩)
- ^Uthmeier, J. (2026). Attorney General James Uthmeier Announces Resolution of Starbucks Lawsuit – My Florida Legal. Florida Attorney General. Retrieved from https://www.myfloridalegal.com/newsrelease/attorney-general-james-uthmeier-announces-resolution-starbucks-lawsuit (go back ↩)
