Ever since Brian Niccol took over as President and CEO of global coffee chain Starbucks inSep. 2024, the company has been on an overdrive to get back its lost mojo.
With his “Back to Starbucks” Strategy, Niccol has been able to set right what has been the Achilles’ heel for the world’s largest cafe chain which has seen 2 professional CEOs exit over the last 4 years.
Kevin Johnson moved out after the pandemic, serving a gloriful 5-year term. Former McKinsey Consultant Laxman Narasimhan exited within 17 months in Aug. ‘24, even as Howard Shultz, the company’s Founder and Chairman handpicked the CEO and coached him all along.
For Q2 FY 2026, global sales are up 6.2% while like-for like store sales in the USA was up 7.1%. China business continues to remain stressed with a modest 0.5% growth in revenues.
In the US, the number of SBUX stores stood at 16,944 (up from 15,873 in 2022) though growth has decelerated dramatically due to market saturation and strategic closures.
In 2025, Starbucks opened 509 new locations across USA but closed 620 older or less efficient layouts, resulting in a slight net decline to optimize operations.
The company is adding over 25,000 physical seats in its American cafes, reverting pickup-only counters back into traditional “third place” lounges, and liquidating underperforming high-overhead Reserve Roastery spaces.
Editor’s Note
Growth comes at a cost.
Many times, it is increased spending on alterations in business strategy. And Starbucks has, like many retail chains worldwide, embraced cost-cutting of human capital right now, to achieve its near-term goals.
The company has announced a severance plan that would cost the company as much as USD 120 Mn and will send home as many as 300 employees across its support offices in North America.
Starbucks is also considering USD 280 mn hit to scale back real estate, corporate support spaces, and shutting underperforming Reserve / Roastery locations.
As of the April 2026, Starbucks operates 41,129 stores worldwide, up from 35,711 stores post-pandemic —representing a net addition of 5,418 stores (+15.17%) since 2022.
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