Starbucks closes over 400 US stores in major restructuring plan
What's the story
Starbucks, the popular coffee chain, has closed more than 400 stores in the US as part of its $1 billion restructuring plan. The company said it reviewed its over 18,000 stores across the US and Canada and shut down those that were underperforming or did not meet brand standards. The closures include 42 stores in New York City alone.
Market shift
Starbucks's market share declines in New York City
The closure of 42 stores in New York City accounts for 12% of Starbucks's total outlets there. The company has lost its position as the largest chain in Manhattan to Dunkin.' This is part of a wider trend, with more than 20 locations also closed this year in Los Angeles, and several others across Chicago (15), San Francisco (7), Minneapolis (6), and Baltimore (5), among other cities.
Expansion strategy
Starbucks's future plans amid restructuring
Despite the store closures, Starbucks is not slowing down. The company plans to open new stores and remodel existing ones in 2026. Major cities like New York and Los Angeles are on the list for these revamped outlets. The new stores will have refreshed designs and improved customer experiences, all in line with the Starbucks brand image.
Fiscal results
Starbucks's financial performance amid restructuring
Starbucks reported mixed results for the fourth quarter and full fiscal year ending September 28, 2025. The company posted a 5% year-on-year rise in consolidated net revenues to $9.6 billion for the September quarter. However, profitability was under pressure due to restructuring costs and higher operating expenses with GAAP earnings per share (EPS) plunging sharply by 85% to $0.12 from last year.