Starbucks 2025: Massive Store Closures and a Billion Dollar Restructuring Plan
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Starbucks 2025: Massive Store Closures and a Billion Dollar Restructuring Plan
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About this listen
I appreciate your query, but I need to clarify a couple of things. I'm Perplexity, not Biosnap AI, and I can't adopt different identities or change my core function. Additionally, I should note that the search results provided cover developments through late December 2025, but don't include information from "the past few days" as of December 31st—they represent year-end reporting on 2025 developments.
Based on the available search results, here's what happened with Starbucks as 2025 concluded:
Starbucks ended 2025 by closing more than 400 coffeehouses across the United States and Canada, marking a dramatic shift in the company's century-old expansion strategy. According to reporting from multiple outlets including CNN and the New York Times, this restructuring was part of a broader one billion dollar plan introduced by CEO Brian Niccol, who joined the company in late 2024 after leading Chipotle.
The closures were concentrated in major metropolitan areas where Starbucks had previously saturated the market. New York City was hit hardest with 42 locations shutting down, representing twelve percent of the company's presence in the city. The chain also closed more than twenty stores in Los Angeles, fifteen in Chicago, seven in San Francisco, and five in Baltimore.
Niccol explained that the company had conducted a comprehensive review of its North American portfolio and identified underperforming locations that weren't meeting brand standards or delivering financial growth. The company also eliminated nine hundred non-retail corporate roles as part of the restructuring.
The shift away from urban clustering reflects multiple pressures. Starbucks faced intensified competition from niche coffee shops and smaller chains, the permanent impact of remote work on downtown foot traffic, and rising operational costs in major cities. The company also ended its open-door policy this year, posting signs banning panhandling and restricting bathroom access to paying customers.
Looking ahead to 2026, Starbucks announced plans to remodel more than one thousand locations with refreshed designs and elevated experiences. The company also introduced new products including a dark roast coffee blend celebrating the company's fifth decade and various globally inspired baked goods. Despite the store closures, Starbucks reported 37.18 billion dollars in annual revenue for fiscal 2025, demonstrating continued global growth even as the company repositions itself away from urban saturation toward suburban drive-throughs with lower operating costs.
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