Starbucks Stores Closing Explained: List of Closing Stores and Why They're Shutting Down

Starbucks is shutting down hundreds of stores across the United States in a drastic cost-cutting shake-up that will also see nearly 1,000 corporate jobs axed.

The coffee giant confirmed on Thursday, 25 September, that around 400 outlets will close their doors, with flagship sites in Seattle, San Francisco and Houston already on the chopping block.

Bosses insist the restructuring is aimed at streamlining operations and improving the customer experience, but the sweeping closures mark one of the biggest overhauls in the company's history.

Why Is Starbucks Closing Stores?

The closures are part of Chief Executive Brian Niccol's new turnaround strategy, called 'Back to Starbucks', which focuses on streamlining operations and revitalising the brand.

In an official blog, Starbucks reported six consecutive quarters of declining sales in the United States, prompting the need for restructuring.

Economic pressures such as inflation and rising operating costs, combined with growing competition in the premium coffee market, have led to reduced customer traffic in some stores.

The company stated that the closures would primarily affect underperforming locations that do not meet financial expectations or offer the desired in-store experience.

'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,' Starbucks CEO said.

Niccol also explained that the company intends to reinvest in fewer but higher-performing stores. This includes simplifying menus, speeding up service and redesigning cafés to create warmer, more welcoming spaces.

Which Stores Are Closing?

Starbucks has not released a full official list of the closing stores, although local reports confirm several closures in key cities. In Seattle, the Capitol Hill Reserve Roastery has been shut after failing to meet customer and financial expectations.

In California, at least seven stores across the San Francisco Bay Area are closing, including some in central and tourist locations.

In Houston, multiple Starbucks stores have also been identified for closure, particularly smaller pickup-only formats that the company is phasing out. While more closures are expected across North America in the coming weeks, Starbucks emphasised that union status was not a factor in deciding which stores would shut.

Customers have expressed concern online, particularly in communities where Starbucks has acted as a social hub. However, the company maintains that the closures are necessary for long-term stability.

The Scale of the Closures and Layoffs

Starbucks has indicated that the closures will result in a net reduction of 124 stores across North America for the 2025 fiscal year, despite the opening of new outlets earlier this year.

The company expects the restructuring plan to cost around $1 billion in total, including $150 million allocated to severance and lease-related expenses.

The 900 eliminated positions are primarily corporate and support roles, rather than in-store baristas. For retail staff affected by closures, Starbucks said it would offer transfers to nearby cafés where possible. Employees who cannot be reassigned will be eligible for severance packages.

Starbucks Workers United, the union representing thousands of employees, criticised the move, saying the closures were announced without consultation. In their official statement, the group said it would pursue negotiations to secure better protections for affected workers in unionised locations.