United States — Starbucks has closed roughly 400 stores across the United States in 2025, marking one of the most significant retrenchments in the company’s history as it restructures operations amid slowing sales and changing consumer behavior.
The closures are part of a $1 billion restructuring plan aimed at recalibrating Starbucks’ North American footprint, with a decisive move away from dense urban concentration toward higher-performing locations and suburban markets.
A Reset After Sales Slump
The decision followed a six-quarter decline in same-store sales in the US, Starbucks’ largest and most critical market. The downturn exposed vulnerabilities in the company’s long-standing expansion strategy, which had prioritized near-ubiquity in major city centers.
Announcing the restructuring in September 2025, Chairman and CEO Brian Niccol said the company needed to refocus on stores that best reflect Starbucks’ vision of serving as a “third place” between home and work.
According to company statements, locations targeted for closure were those deemed financially unsustainable or operationally misaligned, failing to meet performance and customer experience benchmarks.
Urban Pressures Mount
Multiple structural shifts accelerated the closures. Competition from independent cafés, specialty coffee chains, and alternative beverage outlets, including smoothie and bubble tea shops, has intensified in recent years, eroding Starbucks’ dominance in urban markets.
At the same time, post-pandemic changes in work patterns have reduced daily foot traffic in central business districts. The widespread adoption of remote and hybrid work models has diminished demand around office-heavy corridors once critical to Starbucks’ sales volume.
Urban population declines also played a role. Cities such as New York, Chicago, Los Angeles, and San Francisco have experienced demographic shifts that directly affected store viability. Some locations further struggled with safety issues, public use challenges, and enforcement of loitering policies, compounding operational strain.
City-by-City Impact
The effects were most visible in large metropolitan areas:
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New York City recorded the highest number of closures, with 42 stores shut, roughly 12% of its local footprint
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Los Angeles lost more than 20 locations
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Chicago saw 15 closures
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San Francisco closed seven stores
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Minneapolis shuttered six
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Baltimore closed five
Additional closures were spread across other urban centers nationwide.
North American Footprint Shrinks
Including Canada, total store closures across North America approached 500 locations in 2025. By the end of Starbucks’ fiscal year, which concluded in late September, the region recorded a net decline of 113 stores.
In the fourth quarter alone, 627 stores were closed globally, with over 90% located in North America as part of the restructuring initiative.
Company-operated locations in the region saw a net decrease of 143 stores, partially offset by a modest increase of 30 licensed locations. As a result, Starbucks ended fiscal year 2025 with 18,311 North American stores, down from 18,424 the year before.
Strategic Retrenchment, Not Retreat
While the closures signal a major contraction, Starbucks has framed the move as strategic repositioning rather than decline, prioritizing profitability, operational stability, and market adaptability over aggressive expansion.
The company is expected to continue focusing on suburban growth, drive-through formats, and select high-demand urban sites as it navigates evolving consumer habits in a post-pandemic economy.