I’ve been walking past my local Starbucks lately and thought: is this one going to shut down too? It feels like the news got real when I saw signs on social media and in local papers—Starbucks is closing hundreds of stores across North America.
What’s Going On: The Big Picture
Starbucks recently announced a sweeping restructuring plan aimed at “right-sizing” its footprint. The goal is to reduce the number of stores in the U.S. and Canada by about 1% in fiscal 2025—translating into several hundred closures when accounting for both openings and shutdowns.
Some of those closings include high-profile locations, like the Seattle Reserve Roastery.
Why Starbucks Says It Has to Close Stores
Starbucks is citing a few key reasons in its public statements:
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Some stores can’t become the cozy, modern “coffeehouse” Starbucks wants. They don’t have the layout or flexibility to support upgrades.
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Financial performance is weak at certain locations—sales or margins aren’t high enough to justify keeping them open.
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Lease pressures or real estate costs may make some stores untenable.
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Starbucks also says it wants to refocus investment on its stronger stores and redesign more than 1,000 remaining ones with warmer, more textured, layered interiors.
It’s not just brick and mortar. The company is also cutting about 900 non-retail (corporate/support) jobs to reduce overhead.
Some Surprising Facts
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Starbucks is planning to shrink its footprint by 1%, but still end the year with ~18,300 stores in North America.
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One of the closures is the Seattle Reserve Roastery, a flagship “experience” location.
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This is not the first time Starbucks has cut its corporate headcount this year. Earlier in 2025, it cut ~1,100 roles.
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Analysts estimate that about 500 company-owned locations in North America could be affected by closures.
What Happens to Employees, Communities, and Customers
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Starbucks will try to offer transfers to nearby stores for workers at closing sites.
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For those who can’t be transferred, Starbucks is offering severance and support packages.
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Some locations being closed are unionized. The company insists union status wasn’t a factor in choosing which stores to close.
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For communities, losing a Starbucks means losing a familiar gathering place, a spot for remote work, or a daily latte stop.
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On the flip side, Starbucks plans to reinvest in its remaining stores to make them more appealing, improving ambiance, seating, speed, and comfort.
Balancing Contraction With Growth
The strategy is part of Starbucks’ broader “Back to Starbucks” turnaround plan. While it’s trimming in some areas, it hopes to invest harder in customer experience, store upgrades, and tech to support more efficient operations. The idea: fewer stores, but stronger ones.
I’ve been going to Starbucks since college, so hearing about store closings always feels personal. I wonder if my favorite store will vanish, or if it’s safe because it’s busy and feels inviting. It also makes me reflect: sometimes success is not about being everywhere, but being meaningful where you are.
Starbucks is closing hundreds of stores mainly because some can’t meet the design or financial bar they’ve set. They’re cutting corporate jobs, offering transfers or severance to staff, and trying to double down on their stronger stores. It’s a big shift in strategy—and it reminds us that even giants can’t ignore performance and experience forever.
What do you think: will this move help Starbucks bounce back or hurt its brand more? Drop a comment and tell me.