Starbucks Store Closures: Why Hundreds of Cafés Are Shutting Down

Starbucks announced that it will close hundreds of underperforming cafés across North America by the end of its 2025 fiscal year, reducing its store count by about 1%.

The move is part of a $1 billion restructuring plan led by CEO Brian Niccol, aimed at reversing six consecutive quarters of declining U.S. sales.

Among the closures is Starbucks’ flagship Seattle roastery, a landmark near its headquarters that also became the company’s first unionized location in 2022. A unionized Chicago store was also shut down, prompting further debate over whether Starbucks is targeting organized locations, something the company denies.

Talks between Starbucks and Workers United, which represents more than 12,000 baristas, remain stalled after walkouts and strikes in recent years.

Analysts estimate roughly 500 company-owned stores across the U.S. and Canada will be impacted by the restructuring. Starbucks says the closures are not tied to unionization but to financial performance and customer experience.

At the same time, the company plans to remodel over 1,000 cafés with cozier seating, more power outlets, and an updated design meant to restore its “coffeehouse” atmosphere.