Starbucks is preparing to close 36 locations across Southern California as part of a broader effort to reduce its store count and eliminate underperforming outlets. On Thursday, the coffee chain announced plans to shutter 250 stores nationwide, representing about 1% of its more than 18,000 North American locations.
The closures are part of Starbucks' ongoing response to intensified competition in the coffee market, which has contributed to slower sales growth. Since taking the helm in 2024, Chief Executive Brian Niccol has implemented a turnaround strategy aimed at enhancing the in-store customer experience. Despite these efforts, Starbucks identified certain stores where meeting financial goals and customer expectations is no longer sustainable.
Chief Operating Officer Mike Grams described the selected stores as those without a viable path to delivering the company’s desired customer experience or long-term financial performance. The chain has already closed more than 600 stores across North America and Europe in recent years and has reduced its non-retail workforce as part of broader cost-cutting measures. However, Starbucks reported a 7.9% increase in global comparable-store sales in its fiscal third quarter, with an 8.1% rise in North American store sales.
Although Starbucks has not officially confirmed the specific locations affected by the latest closures, the company indicated that stores slated for shutdown would post signs notifying customers. Analysts and customers have identified 36 Southern California locations believed to be included, based on listings in the Starbucks app and updates on third-party platforms. A review indicates that these stores have been marked “permanently closed” on Google or are no longer listed in the app, and attempts to reach several by phone were unsuccessful. Starbucks did not respond to requests for confirmation of these site closures.
The locations reportedly set to close span a wide geographic area, including multiple stores in Los Angeles proper, as well as sites in nearby cities such as Aliso Viejo, Burbank, Calabasas, Encinitas, Pasadena, San Diego, Santa Monica, and others throughout the Greater Los Angeles region.
Starbucks has assured employees affected by the closures they will receive support, including assistance in transferring to other stores where possible. Those unable to secure transfers will be provided with severance packages.
The decision to close these outlets appears aligned with Starbucks' broader strategy to focus on stores with stronger performance and to create a more sustainable operational footprint amid evolving consumer preferences and market pressures.