Starbucks has closed 400 locations nationwide as part of a major restructuring effort, with most of the shutdowns having occurred in September, according to CNN.
The closures were concentrated in major cities, specifically in areas where multiple Starbucks stores operated in close proximity. New York City lost 42 locations, according to the Center for an Urban Future’s State of the Chains report, which tracks year-over-year changes in the number of chain stores in each of the five boroughs and citywide.
The changes are being led by CEO Brian Niccol, who joined the Seattle-based company last year and is overseeing a $1 billion restructuring plan.
“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Niccol told employees in September.
“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.”
A Starbucks spokesperson told CNN the closed locations “were underperforming or unable to meet our brand standards.”
Starbucks currently operates more than 18,000 locations across the United States and Canada, down from 18,734 in June.
Despite the closures, the company plans to open new stores in 2026 in major metropolitan areas, including New York and Los Angeles, and to remodel as many as 1,000 existing locations, according to CNN.
The restructuring follows other policy changes this year. Starbucks ended its open-door bathroom policy, no longer allowing non-customers to use restrooms.
Some locations have also posted signs banning panhandling, alcohol consumption and vaping, CNN reported.