Starbucks is closing hundreds of stores across the U.S., including several in the Chicago area, as part of its “Back to Starbucks” restructuring plan.
Why it matters: The closures reflect a broader strategy to adapt to changing market conditions and customer expectations, as Starbucks seeks to solidify its position in an evolving retail landscape.
The details:
- Starbucks anticipates incurring $1 billion in restructuring costs, most of which will be completed by the end of September.
- In addition to the retail consolidations, Starbucks plans to cut 900 corporate positions.
- Retail employees at affected stores will be informed about layoffs or potential job transfers soon.
- Despite the closures, Starbucks plans to renovate over 1,000 stores in the coming fiscal year, with a goal to end the fiscal year with nearly 18,300 stores in North America.
The decision follows a period of declining sales, with North American same-store sales falling by 2% in the third quarter of 2025, mirroring a similar decline the previous fiscal year.
What they’re saying:
- “We’ve made the incredibly difficult decision to close this Starbucks location,” read a sign on the Glencoe store’s window. “We know this may be hard to hear — because this isn’t just any store. It’s your coffeehouse.”
- “During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” CEO Brian Niccol explained.
- “This announcement makes it clear things are only going Backwards at Starbucks under Brian Niccol’s leadership,” Starbucks Workers United stated on its website.
- “I’m super disappointed,” said Jennifer Balestrery of Glencoe. “I do love our local coffee shops, but there’s room in this town for both. So I’m just surprised. And it’s definitely a community — you can see by the way we’re interacting with the staff that it’s just sad.”
What’s next: While some patrons seek their last caffeine fixes from shuttering Starbucks locations, others flock to local coffee shops like Hometown Coffee for their morning brew, indicating a potential shift in community coffee-drinking habits.
The days of a Starbucks on every corner seem to be coming to an end as the coffee giant faces increased competition, inflation, and consumer shifts.
Why it matters: The closures highlight significant shifts in Starbucks’ business model as the company attempts a comeback under CEO Brian Niccol after years of struggles, strategy missteps, and leadership changes.
The details:
- Starbucks announced it will close 1% of its stores in North America this month as part of a $1 billion restructuring plan.
- The company still plans to open new stores next year, but the closures reflect changes in consumer behavior and increased competition from independent coffee shops and growing chains.
- Starbucks’ sales at stores open for at least a year have dropped for six straight quarters, and its stock has dropped roughly 9% so far this year.
- Under Niccol, Starbucks is trying to reposition itself as a “third place” between home and work, bringing back traditions like baristas doodling on cups and reinstating self-serve milk and sugar stations.
The other side: Some workers have complained about the changes, including complicated new drinks during rush hours and bottlenecks at pick-up stations.
What’s next: Despite the challenges, analysts believe Starbucks is moving in the right direction and will achieve a turnaround under Niccol. The company plans to remodel 10% of its company-owned US locations over the next year and make changes to all of its US stores within the next three years.
Nearly 20 Starbucks locations in the Greater Boston area are set to close next week as part of the company’s broader restructuring efforts.
Why it matters: The closures come as the coffee giant shutters hundreds of stores and lays off employees across the U.S., Canada, and Europe.
The details:
- Affected baristas will be offered severance packages and transfers to other locations where possible.
- Starbucks plans to spend $1 billion on the restructuring, including $150 million on employee separation benefits and $850 million related to the physical store closings and lease exits.
- As of June 29, Starbucks had 18,734 locations.
- It remains unclear how many of the closing stores are unionized. Since 2021, workers at 650 company-owned U.S. Starbucks stores have voted to unionize, but negotiations on a contract with the company have yet to be finalized.
What they’re saying:
- “We’ve made the incredibly difficult decision to close this Starbucks location by the end of this week,” read a sign at the Central Street location in Wellesley. “We know this may be hard to hear — because this isn’t just any store. It’s your coffeehouse, a place woven into your daily rhythm.”
- Starbucks Workers United, the labor group organizing employees, criticized the closures for being decided without input from baristas. The union plans to negotiate at each union-represented store that is closing to ensure workers can be placed at another preferred location.
What’s next: For further updates, Truman Dickerson can be reached at [contact information].
Recent from X
Starbucks workers rallied in Chicago on Thursday after CEO Brian Niccol, who made $95 million last year, announced that the company will shut down 59 unionized stores and lay off an additional 900 employees. pic.twitter.com/ID3PxU53RS
— More Perfect Union (@MorePerfectUS) September 26, 2025
BREAKING: Starbucks just announced a $1 billion restructuring and will close 59 unionized stores — nearly 10% of union locations.
It includes the Roastery in Seattle, one of its busiest shops.
CEO Brian Niccol made $100 million in four months last year.
— More Perfect Union (@MorePerfectUS) September 25, 2025
Starbucks doesn't want a Starbucks directly across the street from another anymorehttps://t.co/ONQsxJeVQJ
— Nathaniel Meyersohn (@nmeyersohn) September 27, 2025
