Starbucks Shutters Hundreds of Coffee Shop Locations
In 2025, Starbucks has made the significant decision to close approximately 400 of its coffee shop locations across the United States. This move marks a notable shift from the brand’s previous strategy to expand its presence in major metropolitan areas such as New York and Los Angeles.
Reasons for Store Closures
The closures are part of a larger $1 billion restructuring plan initiated by Starbucks. This plan also includes laying off 900 corporate employees. The company’s spokesperson indicated that the closed locations were deemed “underperforming or unable to meet our brand standards.”
Market Challenges
- Increased competition from independent coffee shops.
- Growth of drive-thru coffee chains.
- Shift of customers from urban areas since the Covid pandemic.
As a result, Starbucks experienced a 9% decline in its stock this year. Additionally, sales at stores open for at least a year have consistently dropped during this period, signaling potential challenges ahead for the coffee giant.
Impact on Major Cities
Among the locations affected, significant closures occurred in:
- New York City: 40 stores
- Los Angeles: 20 stores
- Chicago: 15 stores
- San Francisco: 7 stores
- Minneapolis: 6 stores
- Baltimore: 5 stores
While specific closures in states like Alabama have not been clarified, the overall trend indicates a substantial reduction in Starbucks’ footprint in urban environments.
Future Plans
Despite these closures, Starbucks remains committed to its growth strategy and plans to open new stores in 2026. The company is focused on reevaluating its presence to align with evolving market dynamics.
