Starbucks Closes 57 Stores Across Canada in Major Restructuring Effort

September 2025 – Starbucks has announced the closure of 57 stores across Canada as part of a comprehensive $1 billion restructuring initiative aimed at addressing financial performance challenges and evolving market conditions. The closures, which affect multiple provinces but notably exclude Nova Scotia, represent the coffee giant's most significant operational adjustment in recent years.

Understanding the Store Closures

The Seattle-based coffee chain confirmed in late September 2025 that dozens of Canadian locations would be shuttered following a company-wide performance review. The closures are concentrated primarily in two provinces:

• Ontario: Over 30 stores are closing, making it the most affected province
• British Columbia: At least 11 locations are shutting down, including two stores in Victoria

Major cities impacted by the closures include Ottawa, Toronto, Vancouver, Port Moody, Richmond, and Kamloops. Importantly, no Starbucks locations in Nova Scotia are closing, allowing Maritime coffee lovers to continue enjoying their local stores.

Why Is Starbucks Closing Stores?

Starbucks CEO Brian Niccol emphasized that these closures go beyond the company's typical annual adjustments, describing them as necessary measures for a comprehensive business turnaround. Several factors are driving this decision:

Financial Performance Challenges

The stores selected for closure were identified as underperforming locations where operational or financial benchmarks were not being met. This strategic review aimed to optimize the company's real estate portfolio by focusing resources on more viable locations.

Changing Market Conditions

The coffee industry has faced significant headwinds in recent years, including:

• Rising competition from both established chains and independent coffee shops
• Inflationary pressures affecting operational costs
• Shifting consumer behaviors following the pandemic, with changes in commuting patterns and work-from-home arrangements impacting foot traffic

Maintaining Customer Experience Standards

Some locations were closed because Starbucks determined they could not maintain the preferred customer environment that has become synonymous with the brand.

The Broader Restructuring Initiative

The Canadian store closures are just one component of a larger $1 billion restructuring effort that includes:

• Workforce reductions: Approximately 900 non-retail employees are being laid off
• North American footprint adjustment: Hundreds of locations across North America are being closed
• Year-end targets: Starbucks plans to end its fiscal year with approximately 18,300 North American locations—a reduction of 124 stores compared to the previous year

Support for Affected Employees

Recognizing the significant impact on its workforce, Starbucks has implemented several support measures for affected employees:

• Severance packages for workers whose stores are closing
• Job transfer opportunities to other locations where positions are available
• Transition support to help employees navigate the change

The company has emphasized its commitment to treating affected staff with dignity and providing resources during this difficult transition period.

What's Next for Starbucks in Canada?

Despite the closures, Starbucks remains committed to its Canadian presence with ambitious plans for improvement and growth:

Store Renovations and Upgrades

Over the next 12 months, Starbucks plans to revamp more than 1,000 locations across North America to enhance the customer experience. These improvements will include:

• Updated interior design elements
• Enhanced technology integration for ordering and payment
• Improved layouts to better serve both in-store and mobile customers

Future Growth Plans

The company has indicated that new growth initiatives are expected beginning in fiscal year 2026, suggesting that after this period of consolidation, Starbucks will resume expansion in strategic markets.

Continued Investment

Starbucks has reaffirmed its commitment to investing in remaining Canadian locations, ensuring that customers continue to receive the high-quality experience the brand is known for.

Impact on Local Communities

Starbucks coffeehouses have long served as community gathering places, and the company acknowledges the significant impact these closures will have on local customers. The chain described its stores as "community hubs" and expressed sensitivity to how these changes will affect neighborhoods where stores are closing.

For communities in Nova Scotia and other provinces where stores remain open, Starbucks has pledged to continue serving as a reliable meeting place and third space between home and work.

The Bigger Picture: Retail Industry Challenges

Starbucks' restructuring reflects broader trends affecting the retail and restaurant industries:

Post-Pandemic Adaptation

Consumer behavior has fundamentally shifted since 2020, with more people working remotely and changing their daily routines. This has impacted foot traffic at stores that previously relied on commuter business.

Economic Pressures

Rising inflation and economic uncertainty have made consumers more selective about discretionary spending, including daily coffee purchases.

Competitive Landscape

The coffee shop market has become increasingly crowded, with new competitors and alternative options available to consumers in many markets.

What This Means for Starbucks Customers

For most Starbucks customers across Canada, particularly those in provinces like Nova Scotia where no closures are occurring, the day-to-day experience will remain unchanged. The company's focus on improving existing locations may actually enhance the customer experience at stores that remain open.

Customers in affected areas may need to travel to nearby locations, though Starbucks has worked to minimize disruption by maintaining sufficient coverage in most markets.

Conclusion

The closure of 57 Starbucks stores across Canada represents a significant but strategic adjustment as the company navigates challenging market conditions. While provinces like Ontario and British Columbia will see multiple closures, other regions—including Nova Scotia—will maintain their full complement of Starbucks locations.

This restructuring, though painful for affected employees and communities, positions Starbucks to emerge stronger and better adapted to current market realities. With plans to invest heavily in store improvements and resume growth in the coming years, the coffee giant aims to maintain its position as a leader in the Canadian coffee market while delivering an enhanced experience to customers at its remaining locations.

For Starbucks, this moment represents both an ending and a new beginning—a necessary realignment that the company hopes will set the stage for sustainable success in the years ahead.