Starbucks is the face of the coffee industry. What started as a small cafe in Seattle four decades ago has blossomed into an ever-growing global brand. While it seems that the power of Starbucks is unstoppable, its momentum may be fading.
On Sept. 29, Starbucks announced that they were closing over 400 locations across the country. These stores are in cities such as Los Angeles, Washington, DC, Miami, Chicago, Boston and New York City. The closures would result in the layoff of over 900 Starbucks employees.
Starbucks has said that they are working to relocate these employees or offer “comprehensive severance packages.”
As of June 2025, there were 18,734 North American Starbucks locations. By the end of the year, they are planning on only operating 18,300 locations.
Some of the most surprising closures on the list are the two flagship Starbucks locations in Seattle, which include an in-house coffee roastery and exclusive menu. Unlike other Starbucks locations in the country, the Seattle Reserve Roasteries sold affogatos, cocktails and pizza.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” says CEO Brian Niccol
The Cause of the Closures
Many are asking what has led to these closures. Have consumer patterns shifted? Is there more competition?
A recent survey has found that 70% of consumers blamed higher prices for not going to Starbucks as frequently in the last year. The survey also found that affording Starbucks is becoming a struggle for those making less than $100,000 per year.
The “Back To Starbucks” Plan
However, it seems that the closures are part of CEO Brian Niccol’s $1 billion “Back to Starbucks” plan, which aims to restructure and revive the chain. According to records, Starbucks’ sales have been facing declines for over six quarters. Niccol’s main goal is to reintroduce an authentic coffee house atmosphere, even boasting that he would like customers to receive their coffee in under four minutes.
Other efforts to implement this plan include simplifying the menu by eliminating about 30% of options, no longer upcharging for non-dairy customizations/refills and adding self-serve condiment stations. Additionally, over 1,000 stores across the country were renovated to include more comfortable and welcoming seating. The company is planning to fully renovate all of the U.S. stores within the next three years.
“It is clear we need to fundamentally change our strategy to win back customers…we’re reclaiming the third place, so our cafes feel like the welcoming coffeehouse our customers remember,” sayss CEO Brian Niccol.
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