After closing hundreds of stores nationwide, Starbucks is reshaping its U.S. footprint as part of a broader turnaround strategy to reverse slowing sales growth and restore customer traffic.
The coffee giant has spent the past several years making significant changes across its business, including closing underperforming locations while investing in store upgrades, operational improvements, and new formats better aligned with changing consumer demand
Although Starbucks (SBUX) remains the largest coffeehouse chain in the U.S., executives say its next phase of growth will look significantly different from its traditional expansion model. Starbucks plans to open 5,000 additional U.S. stores Speaking at the Evercore Consumer and Retail Conference earlier this month, Starbucks CEO Brian Niccol said the company plans to open 5,000 additional stores across the U.S. According to Niccol, much of that growth will target underpenetrated markets stretching from Texas to Virginia, where Starbucks believes it historically lacked adequate store coverage.
Niccol said Starbucks had previously focused more on the West and East Coasts, creating expansion opportunities in regions across the middle of the country. For example, Niccol pointed to markets such as Nashville, where Starbucks has historically maintained a smaller company-operated presence outside licensed locations, including hotels and suburban areas, despite population growth and high consumer demand. The strategy aligns with several recent company moves, including the closure of two Starbucks Reserve Roastery locations in Seattle and a $100 million investment in a new support office in Nashville as part of its broader effort to strengthen its presence in the Southeast.