Why Starbucks Closed 400 City Stores and Moved to the Suburbs
The coffee giant shuttered locations concentrated in major cities, as part of CEO Brian Niccol's $1 billion restructuring plan.
The coffee giant is shuttering roughly 400 locations nationwide, concentrated in major cities, as part of CEO Brian Niccol’s $1 billion restructuring plan.
By Jonathan Small | edited by Jessica Thomas | Dec 30, 2025
The Onion once joked, “New Starbucks Opens In Rest Room Of Existing Starbucks,” and it seemed like you couldn’t walk down a city street without seeing that familiar logo. Now the chain is closing stores by the hundreds.
In September, CEO Brian Niccol announced Starbucks would close 187 stores as part of a $1 billion restructuring plan. But the closures more than doubled that number, as Starbucks has now shuttered roughly 400 stores nationwide, including 42 locations in New York and more than 20 locations in Los Angeles.
Niccol, hired last year from Chipotle, is abandoning the city saturation strategy that backfired amid competition from niche coffee shops, remote work and rising costs. Its new destination: suburban drive-throughs where rent and labor are cheaper.
The Onion once joked, “New Starbucks Opens In Rest Room Of Existing Starbucks,” and it seemed like you couldn’t walk down a city street without seeing that familiar logo. Now the chain is closing stores by the hundreds.
In September, CEO Brian Niccol announced Starbucks would close 187 stores as part of a $1 billion restructuring plan. But the closures more than doubled that number, as Starbucks has now shuttered roughly 400 stores nationwide, including 42 locations in New York and more than 20 locations in Los Angeles.
Niccol, hired last year from Chipotle, is abandoning the city saturation strategy that backfired amid competition from niche coffee shops, remote work and rising costs. Its new destination: suburban drive-throughs where rent and labor are cheaper.