Starbucks Targets 9,000 Cafes in $1 Billion Turnaround Bet

Starbucks plans to spend about $1 billion upgrading its North American cafes, extending CEO Brian Niccol’s turnaround with a broad bet on more welcoming stores. The Financial Times reported the work could reach 8,000 to 9,000 company-operated locations, at roughly $150,000 per cafe.

The rollout is already underway. Starbucks said on September 23 that more than 1,000 U.S. and Canadian cafes had been redesigned since late 2025, and it aims to finish at least 1,500 by the end of fiscal 2026.

The “uplifts” add softer seating, rugs, warmer lighting and neighborhood artwork. Starbucks is also bringing back ceramic cups and glassware, condiment bars and more power outlets as it tries to make cafes comfortable places to stay.

The business case is that customers who linger may return more often or buy more during a visit. That is a fresh investment in the in-store experience as the company works to restore its “third place” identity, between home and work.

Recent sales give the plan momentum. In the quarter ended June 28, U.S. comparable sales rose 7.9%, while customer transactions increased 4.2%. Starbucks reported total revenue of $9.3 billion, down 1%, largely because it shifted its China stores to a licensed joint-venture model.

Profitability remains a key measure of progress. Starbucks’ adjusted operating margin reached 14.4% in the quarter, up 4.3 percentage points from a year earlier. The Financial Times also reported a target of $2 billion in cost savings over two years, alongside the cafe spending.

Investors will watch whether the remodeled stores help sustain customer traffic without eroding margins. Starbucks has raised its fiscal 2026 outlook to adjusted earnings of $2.55 to $2.65 per share, setting a financial benchmark for the next stage of the turnaround.