Starbucks closes nearly 400 stores in US in 2025

• Strategic Pivot: Starbucks shuttered approximately 400 US stores in 2025 as part of a $1 billion restructuring plan, moving away from urban saturation to focus on high-performing locations and suburban growth.
• Economic Pressures: The closures were driven by a six-quarter decline in same-store sales, intensified competition from independent cafes, and post-pandemic shifts in remote work that reduced foot traffic in major metropolitan centers.

Starbucks carried out massive “restructuring” in 2025, resulting in the closure of roughly 400 stores across the United States.

This move was part of a broader $1 billion plan aimed at optimizing the company's North American portfolio.

The closures, concentrated in major metropolitan areas, marked a shift away from the chain's previous expansion model, which had emphasized ubiquity in urban centers.

The restructuring was announced in September 2025 by Starbucks Chairman and CEO Brian Niccol, who outlined the need to refocus on high-performing locations that align with the brand's vision as a "third place" between home and work.

According to official communications, the closures targeted underperforming or unviable coffeehouses that failed to meet financial or experiential standards.

This decision followed a period of sales declines in the US, the company's largest market.

Key factors contributing to the closures included intensified competition from independent coffee shops, specialty chains, and alternative beverage outlets such as smoothie and bubble tea vendors.

Additionally, post-pandemic shifts in urban demographics played a role, with declining populations in cities like New York, Chicago, Los Angeles, and San Francisco reducing foot traffic.

The rise of remote work further diminished demand in central business districts, while some stores faced operational issues related to public use, safety concerns, and policy enforcement against loitering and other disruptions.

Specific impacts were felt in several large cities. New York saw the shuttering of 42 locations, representing about 12% of Starbucks' presence there.

Los Angeles lost more than 20 stores, Chicago 15, San Francisco seven, Minneapolis six, and Baltimore five, with additional closures scattered across other urban areas.

In North America overall, including Canada, the total closures approached 500, contributing to a net decline of 113 stores by the end of fiscal year 2025, which concluded in late September.

The closures affected approximately 627 stores globally in the fourth quarter alone, with over 90% in North America as part of the restructuring.

Company-operated stores in the region experienced a net decrease of 143, after accounting for limited openings.

Licensed stores, however, saw a modest net increase of 30, bringing the total North American footprint to 18,311 locations by fiscal year-end, down from 18,424 the previous year.