Starbucks is closing around 1% of its company-operated stores in North America, which amounts to roughly 400-500 locations in fiscal year 2025. The closures are part of a $1 billion restructuring plan announced by CEO Brian Niccol to address declining sales and improve store performance. The stores being closed are generally those where Starbucks cannot create the desired customer environment or sees no path to financial viability. Specific stores closing include multiple locations in Massachusetts (such as Boston, Cambridge, Brookline, Somerville, and others), Minnesota (including unionized stores in St. Paul and Minneapolis), California (with 67 stores on an unofficial list), Texas, Colorado, Georgia, Virginia, and other states. Notably, the iconic Reserve Roastery and Reserve store in Seattle are also among the closures. The company plans to inform affected employees this week and hopes to transfer them to nearby stores when possible or provide severance packages. The closures aim to position Starbucks for future growth with plans to refurbish over 1,000 stores and resume expansion in fiscal 2026. Examples of store closures by location include:
- Massachusetts: Boston (Kenmore Square, Soldiers Field Road, Tremont St., Rowes Wharf), Cambridge (Harvard Square, JFK St., Massachusetts Ave.), Brookline, Somerville (Davis Square), Newton (Waban), Wellesley
- Minnesota: St. Paul (300 Snelling Ave. S.), Minneapolis (Nicollet Ave., Canadian Pacific, 22nd and Hennepin, 26th and Nicollet, City Center)
- California: Hemet, San Diego, North Ridge, San Francisco (Fisherman’s Wharf)
- Texas: Houston (Memorial & Asbury, Highway 6 and Dulles)
- Colorado: Fort Collins (College & Horsetooth, College & Laurel)
- Georgia: Atlanta (Piedmont & Auburn)
- Virginia: Richmond (Arthur Ashe Boulevard)
- Seattle, WA: Reserve Roastery and Reserve store
The closures are happening mostly by the end of September 2025, with some stores closing as soon as the end of the September week. The Starbucks app is being updated to reflect store closures for customers. This restructuring also includes layoffs of about 900 non-retail employees as Starbucks seeks to build a stronger and more resilient operation going forward.