Tuesday, September 30, 2025

Starbucks to Close Over 100 North American Stores Amid Restructuring Plan

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Starbucks has recently announced the closure of over 100 corporate-owned stores across North America, marking approximately 1% of its total locations. While the company has not published an official list of affected stores, Business Insider has compiled information from reports by in-store staff, journalist visits, and the Starbucks store locator tool. The closures are spread across multiple states, including California, Washington, New York, Texas, and Virginia, reflecting a broad restructuring effort aimed at optimizing the company’s retail footprint.

Among the locations set to close is the iconic Capitol Hill Reserve Roastery in Seattle, which opened in 2014. This store has held a special place in Starbucks history, both for its unique offerings and as one of the company’s first unionized stores. Starbucks has clarified that the union status of the store did not influence the decision to close it. Instead, the closures are part of a larger initiative to phase out underperforming corporate-owned locations while reallocating resources to strengthen more successful stores and initiatives. The company has stated that it is working to reassign affected employees wherever possible.

The closures form part of a broader restructuring plan by Starbucks, which also includes laying off approximately 900 non-retail employees. The company estimates that the overall cost of this restructuring will be around $1 billion, accounting for employee separation, early lease terminations, and other related expenses. Despite these closures, Starbucks remains committed to growth and innovation, with plans to open additional stores and refurbish over 1,000 existing locations during fiscal year 2026.

These actions reflect Starbucks’ strategic approach to balancing operational efficiency with long-term growth goals. By closing underperforming locations and focusing on high-potential stores, the company aims to enhance customer experiences, streamline operations, and maintain its leadership position in the coffee retail industry. For consumers and Starbucks enthusiasts, this period of change underscores the evolving nature of retail, highlighting the importance of adapting to market trends while continuing to deliver quality products and experiences.

Overall, while the closures may come as a surprise to many, they represent a calculated effort by Starbucks to strengthen its core business, invest in promising locations, and continue expanding its presence both domestically and internationally. Through this restructuring, Starbucks seeks to ensure sustainable growth and maintain its reputation as one of the world’s leading coffee brands, demonstrating resilience and adaptability in a competitive retail environment.

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