Starbucks lovers might need to find a new place to get their Frappuccinos and muffins in the new year, as the popular coffee chain confirmed it closed roughly 400 locations in 2025.
According to CNN, Starbucks is undergoing a strategic adjustment, particularly in major cities. The company reportedly closed 42 New York City locations, about 12% of its total NYC stores. Los Angeles saw 20 closures, while Chicago lost 15 locations, and San Francisco saw seven stores shut down in 2025.
A Starbucks spokesperson told CNN that the chain closed locations “that were underperforming or unable to meet our brand standards.” The company’s goal, especially in major metro areas, is to offer “refreshed designs and elevated experiences that reflect the Starbucks brand.” As of publication, it remained unclear how many jobs were eliminated.
Starbucks also reportedly plans to renovate 1,000 stores — roughly 10% of its U.S. locations — adding more chairs, couches, tables, and power outlets.
Starbucks is set to close 400 stores across the United States.
Going cashless didn’t work out. What a shame. pic.twitter.com/utQkNNycC2
— Bruce (@bruce_barrett) December 30, 2025
Increased competition from independent coffee shops and smaller chains has reportedly been a significant challenge for Starbucks in recent years. Rising prices for even a small latte have not helped, either. Catherine Yeh, the director of market analytics at CoStar Group, told CNN that the pandemic and the shift to remote work have also hurt the company, as potential customers may not feel the need to stop for coffee if they are working from home.
“People haven’t stopped drinking coffee but it appears they stopped paying a premium for it,” read one X post. “I’m trying to figure [out] if home brewing would be an alternative that’s taking off? I’m sure there are cheaper alternatives, including local cafés that are winning.”
Another X user added, “Sometimes doing less is doing more! By focusing on their best locations and what truly works, companies like Starbucks show that shrinking strategically can be smarter than growing endlessly.”
Starbucks has made several high-profile changes in recent years, including enacting stricter rules inside stores and on patios. Customers are prohibited from smoking or vaping, and those who want to use the bathroom must purchase an item.
Additionally, Starbucks was among the companies that stopped using plastic straws, a practice that began in 2018. By 2020, the chain had largely switched to paper straws and plastic lids with a drinking spout.
“Guess people finally realized overpriced coffee isn’t an essential service,” another X user commented. “[I] wonder which ones survive just for the wifi battles.”
When you have a location every other block with products in every store and gas station, you loose the allure of scarcity/novelty to continue charging people $10 for pouring hot water over beans. pic.twitter.com/TA0wYVA3jc
— Richard (@RichardUpTheBiz) December 31, 2025
Founded in Seattle in 1971, Starbucks initially operated as a local coffee shop. Today, the company has more than 40,000 locations in nearly 90 countries. Co-founder Howard Schultz remains chairman emeritus, and former Chipotle CEO Brian Niccol became chairman and CEO last year.
Nearly 100 Starbucks locations were on strike as of November 2025, with employees seeking “better staffing, higher pay, and resolution for hundreds of unfair labor practice charges,” according to the union’s website.
“The coffee giant has committed more labor law violations than any employer in modern history,” the union argues. “Starbucks needs to fully resolve legal issues impacting baristas.”
It remained unclear whether the ongoing strike would result in additional store closures.
