Is Starbucks Pulling Back: Or Brewing a Bigger Comeback?
Starbucks is not just reducing the amount of foam on top of its drinks. The company has reportedly shut down more than 400 stores in the United States as part of a huge restructuring plan that will cost $1 billion. The hardest-hit city was New York, where 42 shops, almost 12% of the total number in the city, have closed after Starbucks lost its position as the largest coffee chain in Manhattan to Dunkin’.
In the minds of consumers, the disappearance of the green logo from street corners raises a question mark, is it a retreat or a reset? Starbucks explains that it’s about cutting back on low-performing stores to create space for a stronger comeback. The brand may have fewer stores now, but a leaner and sharper Starbucks in the future, will it be worth it?
Why Starbucks Is Closing Stores
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Large-scale review: Starbucks evaluated more than 18,000 stores across the US and Canada as part of its restructuring effort.
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Underperforming outlets: Stores that consistently failed to meet sales and performance expectations were identified for closure.
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Brand standards: Locations that did not align with Starbucks’ evolving brand, design, or customer experience benchmarks were shut.
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Strategic reset: The closures are aimed at streamlining operations and focusing resources on stronger, high-potential markets.
Is Starbucks Brewing A Stronger Future After The Shutdowns?
The decision of Starbucks to close its stores has not only affected New York but also other large cities in the United States. The company is going back to basics with its strategy by closing more than twenty shops in Los Angeles and cutting fifteen in Chicago, seven in San Francisco, six in Minneapolis, five in Baltimore, and other locations throughout the country.
Nevertheless, don’t be disappointed at the thought of the green logo disappearing from your daily route; there is an unexpected turn: it is not an exit but a reset. Starbucks claims that its strategy of shutting down low-performing sites is a way of preparing for the future.
By 2026, the brand will not only open new stores but also remodel existing ones, with a focus on major cities like New York and Los Angeles. New designs, improved customer experiences, and a renewed dedication to the brand’s core values will define operations.
Starbucks Financial Performance Highlights (Quarter Ended September 28, 2025)
| Category | Details |
|---|---|
| Revenue | Consolidated net revenues rose 5% YoY to $9.6 billion. |
| Profitability | Pressured due to restructuring costs and higher operating expenses. |
| GAAP EPS | Plunged 85% YoY to $0.12. |
| Adjusted (Non-GAAP) EPS | Declined 35% YoY to $0.52. |
| Global Comparable Store Sales | Increased 1%, first growth in seven quarters, signaling early traction for “Back to Starbucks” strategy. |
| US & North America Store Sales | Flat growth; higher average bill size offset by lower customer traffic. |
| International Store Sales | Grew 3%, driven by strong transaction growth, including 2% rise in China. |
(With Inputs)