Local Starbucks Closures Due to Brand Realignment

Outside Starbucks, Boston MA, skyscraper in the background. Courtesy of Wikimedia Commons.

On September 25, 2025, Brian Niccol, Starbucks Chairman and CEO, released a statement to Starbucks employees, partners, and consumers addressing recent company changes. He explained two key company-wide adaptations: the reevaluation of Starbucks locations and the reduction of non-retail employee roles. Starbucks will end its fiscal year with approximately 18,300 total Starbucks locations in the US and Canada, a decrease of 430 stores from its 18,730 locations in June 2025.

These recent store closures align with Niccol’s “Back To Starbucks” initiative, which was announced in September 2024. His ongoing plan for the future of the Starbucks company and brand aims to return to the company’s initial roots as a community coffeehouse, rather than a grab-and-go coffee outlet. This plan is rooted in the goal of enhancing the customer experience at Starbucks locations and streamlining operations to foster stronger employee-consumer relationships. The initiative also provides better support and benefits to Starbucks employees, reaffirming their value and role in the Starbucks company-wide operations. Niccol’s plan for company realignment also includes eliminating 900 corporate Starbucks positions and expects a 1% decline in overall company operations in North America’s 2025 fiscal year.

Over twenty Starbucks stores have already closed in Massachusetts, one being the popular “Golden Teapot” location near Government Center. The consumer favorite retailer located on Court Street has more history than an average coffee shop. Boston Historian and Author of Scollay Square, David Kruh, shared the significance of the Golden Teapot, which dates back to 1871. He explained that the teapot was placed above the original Oriental Tea Company to communicate to Bostonians of all languages that tea was available for sale there. The tea kettle has since continued to be a symbol of fine drink, maintained through the transition to a Starbucks location.

Brian Niccol explains that the closure and redesign of stores are based on reforming the ambiance and store layout back to their initial Starbucks standards. Although these Starbucks closures are part of a broader brand realignment plan, their absence presents an opportunity for coffee buyers to consider local or alternative coffee chains. Chris Kayes, Chair of the Department of Management at George Washington University's School of Business, shared with Investopedia that “Starbucks is misaligned with how a growing number of Americans want to purchase their coffee.” He went on to explain that there is a significant  disconnect between Niccol’s “Back To Starbucks” Initiative and what the modern coffee consumer looks for, speed and convenience.

​​Another Starbucks location, in Davis Square, Somerville, is among the stores that have recently closed. Its closure has led to increased business for surrounding coffee vendors. Directly across the street from the Starbucks is Diesel Cafe, a local cafe owned by Jennifer Park. She said that she has already noticed new customers in the cafe in the past week since Starbucks closed. She noted that she is happy to have more business. Another coffee shop owner, George Howell, commented on the recent closures. Howell, the founder of The Coffee Connection, which Starbucks bought in the 1990s, told boston.com that “The entire specialty coffee industry is in turmoil right now.”

Howell could be referring to the tariffs placed on goods by Donald Trump in April of this year. Two of the leading United States coffee importers, Brazil and Colombia, are subject to heavy U.S. tariffs of  50% and 10%, respectively. These tariffs have led to a 20.9% increase in coffee prices in the United States over the past year. The tariffs can be reflected in the change in the average price of a pound of coffee of $8.872 in August, a sharp increase from the average price of $8.414 in July. The rising cost of coffee, driven by tariffs and economic pressures, forces coffee sellers to charge consumers a higher price for their product.

The changes at Starbucks reflect broader shifts in the retail, food, and hospitality service industries, where companies must constantly balance operational efficiency with customer expectations and brand identity. As Starbucks adapts through store closures and organizational restructuring, its “Back to Starbucks” initiative highlights a common challenge for brands: how to evolve without losing the core values that built their success.