Starbucks to Close About 250 Coffeehouses, End DEI Policies in Florida Settlement

SEATTLE — Starbucks plans to close approximately 250 North American coffeehouses later this week and has agreed to eliminate its corporate diversity, equity, and inclusion (DEI) policies nationwide to settle a lawsuit brought by Florida.

The closures amount to roughly 1% of the coffee chain’s more than 18,000 North American locations. Chief Operating Officer Mike Grams disclosed the plan in a memorandum to employees, known internally as “partners.” He said most of the company’s coffeehouses in the region remain profitable, but an internal review found locations that did not meet financial benchmarks or operational standards.

“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 stated in the memorandum. “As a result, we will close approximately 250 coffeehouses later this week.”

The DEI settlement resolves a lawsuit Florida filed in December 2025 under the Florida Civil Rights Act. The Florida Attorney General’s office said the agreement applies to Starbucks operations throughout the United States, not only in Florida. Starbucks will pay $1 million to the Florida Department of Legal Affairs for attorney fees and litigation costs in exchange for dismissal of the case.

Under the agreement, Starbucks will eliminate race- and sex-based goals, quotas and preferences in hiring, promotions and salary decisions; executive compensation and performance metrics; internal mentorship, development and training; supplier selection and vendor diversity initiatives; and the composition and recruitment of its board of directors.

Grams also acknowledged the effect of the closures on local staff and consumers, writing that “closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected.”

“Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character — not race or sex,” Florida Attorney General James Uthmeier said of the settlement. “This resolution ensures that Starbucks’ policies and practices fully comply with Florida’s civil rights laws. DEI can never be an excuse to violate civil rights.”

The Seattle-based company also faces consumer litigation, including a federal class-action lawsuit alleging that extra charges for non-dairy milk substitutes such as oat, almond and soy milk discriminate against lactose-intolerant customers. Its changes come as several major American corporations have reassessed or dismantled DEI frameworks amid heightened legal scrutiny and civil rights lawsuits nationwide.

Starbucks must also end its involvement with external organizations or advocacy groups that require member companies to increase the racial diversity of their governing boards. Its chief legal officer must certify compliance to Florida authorities annually for four years.