Starbucks Closes Two Santa Rosa Cafes, Approves Drive-Thru Replacement
Starbucks has shuttered two cafes in Santa Rosa as part of a nationwide closure of approximately 250 locations. The company simultaneously secured approval for a new drive-thru-only site on College Avenue. This move follows a year of significant reductions in North American store counts and corporate layoffs.
Key points
- Starbucks closed locations at 138 Calistoga Road and 2240 Mendocino Avenue in Santa Rosa, effective late September 2026.
- The Santa Rosa Planning Commission approved a conditional use permit for a new 1,280-square-foot drive-thru location at 131 College Avenue, featuring no customer seating.
- Starbucks COO Mike Grams stated closures target stores lacking consistent customer experience or acceptable financial performance.
- The company plans to transfer employees where possible and provide severance for those who cannot be placed.
- Starbucks disclosed the closure wave will cost approximately $300 million, including lease exit and separation benefits.
Background
This latest round of closures follows a previous wave in 2025 that saw Starbucks shut 627 stores globally. The company’s North American store count declined by 2% over the past year to 18,371, while international locations grew by 3%. In Santa Rosa, this follows other local business restructuring, such as the recent closure of the Amy's Kitchen manufacturing plant.
How outlets are covering it
The Press Democrat highlights the local impact in Santa Rosa, noting the closure of two specific cafes and the approval of a new drive-thru-only site that lacks indoor or outdoor seating. The Tallahassee Democrat and Richmond BizSense confirm the national scope of the 250-store closure, with the latter noting that some closed locations lacked drive-thru capabilities, a factor some community members believe influenced the decisions. Starbucks Workers United criticized the closures as 'outrageous,' while the company emphasized financial performance and customer experience as the primary drivers for the reductions.
Why it matters
The closures signal a strategic shift by Starbucks toward drive-thru formats and away from traditional seating areas, reflecting broader trends in the coffee industry. The $300 million cost of the closures underscores the financial pressure on the company, while the labor disputes highlight ongoing tensions between the corporation and its workforce.
What to watch
Starbucks aims to complete at least 1,500 site 'uplifts' by the end of its 2026 fiscal year. The new drive-thru location in Santa Rosa is expected to open after construction, while the company continues to manage the transition of employees from closed stores.
- Starbucks closes two Santa Rosa cafes, but a new drive-thru is on the way The Press Democrat
- Tallahassee Starbucks closes amid nationwide store closures Tallahassee Democrat
- Starbucks in Twelve Corners closes; second Rochester-area location to shut its doors rochesterfirst.com
- Starbucks closing 250 stores this week: Check if your coffee shop is on the list. KGW
- Starbucks shutters Fan, Short Pump locations as part of mass closure Richmond BizSense
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