It hasn't been a great year for coffee giant Starbucks.
In September, the company announced a $1 billion restructuring and the closure of stores that would result in the layoffs of nearly 1,000 workers. In a memo issued to employees that month, CEO Brian Niccol said, "While we’re making good progress, there is much more to do to build a better, stronger, and more resilient Starbucks."
That restructuring announcement came just days after baristas filed a suit over the company's new dress code. What was this draconian dress code that warranted a lawsuit? Well, starting in May, Starbucks employees were expected to wear a solid black shirt and khaki, black, or blue denim bottoms. The black shirts could be short- or long-sleeved, with or without a collar, and the company was going to provide all employees with two free t-shirts.
Those monsters.
Now it seems that $1 billion restructuring is underway, and Starbucks has announced it has closed about 400 stores in the U.S. this year.
BREAKING: Starbucks to close 400 stores in the US.
— Leading Report (@LeadingReport) December 30, 2025
According to WSMV, Starbucks saw decades of constant growth but is seeing a shrinking presence in cities. More than ten percent of the closed stores were in New York City, and the 42 Big Apple locations that closed were 12 percent of the city's total locations. It also closed 20 stores in Los Angeles, 15 in Chicago, seven in San Francisco, six in Minneapolis, and five in Baltimore.
The company cited rising competition in "saturated areas," an increase in remote work, and higher operating costs as reasons for the decline. And that the closures happened in large, crime-ridden blue cities is also not lost on us.
The company, instead, wants to focus on better quality at a smaller number of stores. CNN reported that Starbucks doesn't want to "be on every street in New York and Los Angeles."
"Its expansion once seemed limitless," wrote Nathaniel Meyersohn, "It was even a joke. In 1998, an Onion headline read 'New Starbucks Opens In Rest Room Of Existing Starbucks.' A few years later, comedian Lewis Black riffed that he’d gone to the “end of the universe” in Houston, where he saw one Starbucks directly across the street from another."
This writer can confirm Black's story. Not in Houston, but in other parts of the country, including the Milwaukee suburbs, she's seen two Starbucks across the street from one another.
Few seemed sad to see Starbucks lost ground in the market.
"Guess that barista walkout backfired, eh?" wrote Buzz Patterson.
Guess that barista walkout backfired, eh? 🤣🤣🤣
— Buzz Patterson (@BuzzPatterson) December 30, 2025
Another pointed out that those closures are "a drop in the bucket" as Starbucks has almost 17,000 locations in America.
I mean... that's a drop in the bucket... pic.twitter.com/efZD1zCpva
— Donald Beez (@BeezDuck78) December 31, 2025
Natalie Danelishen asked, "Wonder why?"
Wonder why? 🤔 https://t.co/ZkA63XaROZ pic.twitter.com/iZrtMC3VPo
— Natalie F Danelishen (@Chesschick01) December 30, 2025
She was highlighting the push by some Starbucks baristas to unionize the company, which has been ongoing for years. About 11,000 baristas at 550 stores are represented by Starbucks Workers United.
According to The Guardian, thousands of baristas went on strike earlier this month, calling it the "longest and biggest bout of industrial action in [Starbucks] history." The strikes impacted 120 stores across 85 cities, with 2,500 workers telling customers to stay away. Starbucks said less than one percent of its locations experienced disruptions due to the strikes.
According to Nation's Restaurant News, 59 unionized locations were closed as part of that restructuring.
Despite these closures, Niccols remains optimistic, telling Fox News in September, I think we're really close on the fundamentals. Then what you can do is, once you have the fundamentals in place, you can innovate from a place of strength. And you're going to see us innovate in the menu."
Editor’s Note: Do you enjoy Townhall’s conservative reporting that takes on the radical left and woke media? Support our work so that we can continue to bring you the truth.
Join Townhall VIP and use promo code MERRY74 to get 74% off your membership.
Join the conversation as a VIP Member