Starbucks announced the closure of more than 100 company-operated stores across North America, signalling a notable shift in the company’s business approach. This step forms part of CEO Brian Niccol’s “Back to Starbucks” initiative, designed to streamline operations and elevate the customer experience.

A Strategic Restructuring

The closures account for about one percent of Starbucks’ retail locations in North America. The company cited underperformance and difficulties in sustaining the intended customer and partner experience as key factors for the decision. Employees affected by the closures are offered transfers or severance packages, while unionised staff receive support through ongoing negotiations. The restructuring process is projected to cost Starbucks around one billion dollars, covering employee separation costs, disposal of store assets, and early lease terminations.

Notable Store Closures

Although Starbucks has not released a full list of closing locations, several have been confirmed through employee reports and site visits:

• Seattle, Washington: The Capitol Hill Reserve Roastery, a flagship store and one of the first unionised locations, will close. Established in 2014, it was known for premium offerings and a distinctive ambiance. The closure follows staff rallies calling for a finalised labour contract.
  
  
• San Francisco, California: Two stores, located near Fisherman’s Wharf and in the Castro district, will shut down. Both had posted notices explaining that the decision was difficult yet necessary.
  
  
• Atlanta, Georgia: At least three stores in the metro area, including Piedmont Heights and Midtown, are set to close as part of the effort to address underperforming locations.
  
  
• Pittsburgh, Pennsylvania: The East Carson Street and Lawrenceville stores will close by September 27, 2025.
  
  
• Washington, D.C.: Multiple locations, including those on Columbia Road NW, New York Avenue NW, and 8th Street SE, will be affected. These closures span various neighbourhoods across the city.
  
  

CEO’s Vision for the Future

Brian Niccol, who previously led a successful turnaround at Chipotle, is spearheading efforts to revitalise Starbucks. His strategy includes reducing the menu by thirty percent, aiming to cut wait times to under four minutes, and enhancing the digital experience for customers. Niccol has also reintroduced elements that emphasise the brand’s personal touch, such as ceramic mugs and handwritten notes on to-go cups. These steps aim to reinforce Starbucks’ identity as a community-oriented brand.

Looking Ahead

Starbucks plans to refurbish over one thousand existing locations and open new stores in the fiscal year 2026. The company remains committed to its Reserve Roastery concept, with locations continuing in cities such as New York, Chicago, Milan, Shanghai, and Tokyo. Starbucks expressed sincere gratitude to the communities and employees impacted by the closures, recognising the emotional significance of these changes.

The restructuring reflects Starbucks’ intent to focus on sustainable growth, optimise operations, and reinforce its brand value while navigating changing consumer demands and market dynamics.