Be prepared to see fewer Starbucks cups in major U.S. cities as the coffee conglomerate is scheduled to close almost 400 locations across state lines, KY3 reported.
After years of rapid expansion, Starbucks is now confronting economic headwinds and criticism
tied to its policies, prompting a shift in strategy. In New York City, coffee drinkers have already felt the impact, with at least 42 locations closing. Facing rising operating costs and intensified competition from independent and chain rivals, the company says its focus heading into 2026 will be on fewer, higher-performing stores and refreshed designs. In a statement, a Starbucks spokesperson said the company “regularly evaluates our portfolio of coffeehouses to ensure we’re meeting the needs of our customers.”“Opening and closing stores is a standard part of our business, and we don’t have additional news in the U.S. or elsewhere to share,” read a statement from Starbucks.
New York City is not the only major city affected. The Seattle-based company shut down over 20 locations in Los Angeles, seven in San Francisco, five in Baltimore, and 15 in the Windy City, CNN reported.
In June 2025, the company had 18,734 locations across North America, but with the new plan, there will be roughly 18,300 locations. In a September 2025 letter to employees, CEO Brian Niccol, who was recruited from Chipotle to turn things around, said the company took a deep dive to identify locations that don’t promise financial growth or aren’t creating the physical environment expected by customers. “Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Niccol wrote.
“This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult,” he added.
Some of the competition Starbucks faces stems from Black-owned coffee shops popping up in cities as an alternative to the expensive white and green cups.
Sugar & Sip Coffee and Workshop in Charlotte, NC, is the perfect combination to get a good vibe, a cup of joe, and get some work done. Not to mention, its central Uptown location is perfect for stopping in on your way to the office or during a morning walk.
Silverback Coffee of Rwanda, with locations in downtown Los Angeles and El Segundo, showcases coffee sourced and curated by African farmers. Made from naturally grown coffee cherries, its rich aroma offers a moment of calm—whether you’re stuck in traffic on the way to a meeting or strolling on the beach with your dog.
Momentum Coffee in Chicago sets the tone of tranquility and peace just by walking in. Vibrant artwork welcomes connections between coffee lovers. Also used as a co-working space, Momentum has several locations across the area, including in the Loop, North Lawndale, and Englewood.
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