The world's largest coffee chain, Starbucks, has begun withdrawing from major cities like New York, Los Angeles, and Chicago, where it had long pursued a "store on every street" growth strategy. The company announced the closure of approximately 400 stores across the US, with a significant portion concentrated in major metropolitan areas.
Starbucks has closed 42 stores in New York, more than 20 in Los Angeles, 15 in Chicago, and 7 in San Francisco. As a result, the company has lost its title as the largest chain in Manhattan to its competitor Dunkin'.
New CEO Brian Niccol stated that the company aims to make Starbucks a "third place" between home and work once again, while acknowledging that the chain's rapid store openings, particularly in city centers, are no longer sustainable. However, this is not the only reason behind the company's contraction.
Official statements cite rising rent and labor costs, the failure of remote work to become permanent, and competition as reasons for the closures. However, commentators note that Starbucks facing a global boycott due to its support for Israel following the humanitarian crisis in Gaza has accelerated this process.
Following civilian deaths in Gaza, Starbucks faced widespread boycott calls both on social media and on the ground. Consumers in many countries, from the Middle East to Europe, and from Türkiye to the US, expressed their opposition to the chain. Observers say this has particularly influenced the closure of city-center stores, where profit margins had already declined.
Although Starbucks announced plans to focus in 2026 on fewer but larger, renovated, and experience-oriented stores, analysts emphasize that the company's crisis is not only commercial but also has political and reputational dimensions.
The surge in consumer backlash following events in Gaza appears to have forced Starbucks to retreat, reversing the "ubiquitous presence" image it had cultivated for years.
