Starbucks has announced the closure of nearly 400 stores across the United States as part of a major shift in its retail strategy. The decision affects several large cities, including the shutdown of 42 locations in New York, more than 20 in Los Angeles, and multiple stores in Chicago, San Francisco, and other urban centers.
According to the company, the closures are focused on underperforming outlets that no longer meet Starbucks’ operational and brand standards. Many of these stores were opened during a period of aggressive urban expansion, which has now led to market saturation in some areas. Rising rents, changing customer habits, and increased competition have also played a role in the decision.
The move comes under the leadership of Starbucks’ new CEO, Brian Niccol, who joined the company from Chipotle. Niccol has signaled a clear change in direction, emphasizing quality over quantity. His vision includes restoring Starbucks as a true “third place”, a comfortable space between home and work where customers can relax, connect, and enjoy the café experience.
While the closures mark a significant pullback, Starbucks says it is not retreating from major cities. Instead, the company plans to remodel existing stores and open new, redesigned locations starting in 2026. These future stores will feature updated layouts, improved seating, and a stronger focus on in-store experience rather than high volume foot traffic.
Starbucks believes this reset will help strengthen its brand, improve customer loyalty, and adapt to evolving consumer expectations in a rapidly changing retail environment.
