If Starbucks is part of your daily routine, or if you work at one, there is some disappointing news. The company just confirmed that it will close up to 90 locations in the United States by the end of 2026. This announcement is part of a big company-wide plan to rebuild and refocus how Starbucks operates.
Why is Starbucks closing locations?
The closures are tied to Starbucks’ ongoing “Back to Starbucks” strategy—a major effort to reset the brand after a few tough years of declining sales and customer satisfaction.
According to CEO Brian Niccol, the company is:
- Phasing out mobile-order-only stores that did not offer seating or a welcoming atmosphere.
- Aiming to bring back more of the classic café experience that made Starbucks popular in the first place.
- Focusing on new store formats that are smaller, more cost-effective, and more community-friendly.
In his own words, Niccol explained during a company call, “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand.”
So if you are used to grabbing your drink from a mobile-only Starbucks kiosk, you might soon see it disappear or be turned into a full café with seating and baristas.
Which stores are likely to close?
While Starbucks has not released a full list of the specific locations that will be closed, here is what we do know:
- Most closures will involve mobile-order-only locations, which currently number between 80 and 90 across the U.S.
- Some of these stores may be converted into full-service cafés with seating and a more traditional Starbucks layout.
- The company is also remodeling at least 1,000 existing stores to improve seating, design, and customer experience.
If your local Starbucks feels more like a pickup spot than a coffeehouse, it might be on the list of changes.
How will this affect Starbucks workers?
This move is not just a blow to coffee lovers—it also affects thousands of workers.
However, Starbucks says it is investing heavily in labor at the same time:
- The company will put over $500 million into staffing and labor hours in U.S.-owned stores over the next year.
- All 10,000+ company-operated locations are expected to receive staffing improvements by the end of summer.
- The goal is to help baristas handle peak hours better and cut down long wait times.
So while some roles may be lost due to store closures, others could be added or expanded in upgraded stores. Still, for employees at mobile-only locations, there is a lot of uncertainty.
What changes are coming to Starbucks stores?
If you have noticed changes already, you are not imagining it. Starbucks has started rolling out upgrades that are part of the broader plan to reconnect with customers and improve in-store experiences.
Here are some of the updates:
- Self-serve condiment bars and handwritten cup labels are back.
- Starbucks is aiming for wait times of under four minutes during busy hours.
- Some remodeled stores will include new textures, seating, and warmer design elements.
- A new “coffeehouse of the future” prototype is on the way. It will have 32 seats, a drive-thru, and cost 30% less to build.
- A smaller-format version is also being built in New York City, set to open in the next few months.
All these efforts are meant to restore the classic Starbucks vibe—friendly, warm, and personal.
Is Starbucks struggling financially?
Even though Starbucks is making all these changes, the company is still generating strong revenue:
- Net revenue rose 3.8% to $9.46 billion in the last quarter, beating estimates.
- Sales in China, a key international market, are picking up again.
- However, U.S. same-store sales fell 2%, marking the sixth straight quarterly drop.
So while Starbucks is not going under, it is definitely working hard to bounce back—and these store closures are just one part of that plan.
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