Starbucks Store Closures 2025: The Real Story Behind the Headlines
Starbucks is closing stores in 2025 — but how does it compare to Dunkin’, Scooter’s, and Caribou Coffee? See the real numbers behind coffee franchise closures.
How Starbucks Closures Compare to Other Coffee Chains
Starbucks just announced hundreds of store closures - and social media is buzzing like it’s the end of an era. But here’s the truth: coffee shop closures are normal in the franchise industry. Coffee chains open, coffee chains close. Instead of panicking, let’s break down the real numbers and what they mean for Starbucks, franchise investors, and the coffee market as a whole.
When Starbucks trims its 17,000+ U.S. locations, the headlines sound dramatic. But in reality, it’s less than 1% of their stores - well within industry averages. Let’s compare Starbucks to other brands using Item 20 of the Franchise Disclosure Document (FDD), which tracks openings and closures:
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- Caribou Coffee – closed 16 out of 487 in 2024 (3.28%)
- Scooter’s Coffee – closed 20 out of 825 in 2024 (2.42%)
- Dunkin’ Donuts – 67 closures in 2024 (0.79%), 139 in 2023 (1.68%), 137 in 2022 (1.69%)
👉 Compared to these numbers, Starbucks’ percentage of closures looks average - even conservative or on the low end.
Inside the “Back to Starbucks” Plan
On September 25th, Starbucks CEO Brian Niccol shared the “Back to Starbucks” plan with employees. The key points:
- Closing underperforming locations that can’t deliver expected atmosphere or profitability
- Investing in 1,000+ redesigned stores with better layouts and staffing
- Adding modern innovations to create the “coffeehouse of the future”
- Eliminating 900 non-retail jobs to refocus resources
- Ending 2025 with nearly 18,300 North American locations — and plans to grow again in 2026
So, Starbucks isn’t shrinking into obscurity. It’s realigning resources for long-term growth. You can read Brian's press release on the Starbucks website.
Starbucks closures aren’t spread evenly. Below are the states and regions feeling it the most. You can view the whole list including addresses on the Business Insider website.
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Which Coffee Chains Are Franchises?
Most U.S. coffee brands run on the franchise model, meaning franchisees carry the investment risk and decide when to shut down stores. But not all coffee shops work that way.
This matters because when a franchised brand closes stores, it’s often because individual owners couldn’t make their numbers. With Starbucks, closures are a strategic corporate decision, not the failure of independent franchisees.
Should You Own a Coffee Franchise?
Here’s the reality of coffee franchise ownership:
❌ Opening can take a full year (sometimes longer).
❌ Investment ranges from $500,000 to several million dollars.
❌ Owners must hire and manage large staff.
❌ Coffee shops open at dawn, and someone has to prep even earlier.
❌ Some brands don’t even average $1 million in annual sales per unit (see Item 19 of the FDD).
That’s why coffee shop ownership often looks more glamorous than it really is.
So, is Starbucks collapsing? Absolutely not. These closures are normal business adjustments, just like we see at Dunkin’, Scooter’s, Caribou Coffee, and other competitors. But before investing in any coffee franchise opportunity, it’s critical to look beyond the hype and into the numbers — startup costs, margins, and lifestyle.
Work With Franchise Inspectors
At Franchise Inspectors, our mission is to help you cut through the hype and understand the real risks and rewards of buying a franchise. If you’re considering investing in a coffee franchise or any other franchise opportunity, please contact us. Our team will help you evaluate the numbers, the risks, and the opportunities so you can decide if this brand truly aligns with your business goals.
✅ Our service is free.
✅ We sift through hundreds of brands for you.
✅ You make smarter, safer decisions.
👉 Contact Franchise Inspectors today to find the best franchise for you.
