The holiday season always brings out the specialty coffee drinkers, whether they are fans of Starbucks’ Peppermint Mocha or Caramel Brulée Latte, or maybe Peet’s Dubai Style Chocolate Matcha or Pistachio CBOL.
The wait for one of these holiday treats in coffee shops or drive-thru lanes can take longer than normal as a result of the higher demand this time of year.
But many of the customers believe it is worth the wait to enjoy one of these tasty drinks.
Unfortunately, the rest of the year may not have been as bright and shiny as the holiday season seems, as coffee chain giant Starbucks plans 100s of store closings. Peet’s also closed several locations, but has some good news on the horizon.
Starbucks to close 434 locations
Starbucks in September revealed that it would reduce its North American store count by about 1%, or from 18,734 shops to 18,300 by the end of fiscal year 2025, as part of a restructuring that is expected to cost the coffee giant $1 billion.
Starbucks reviewed its North America portfolio earlier this year to determine which locations it would close.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Starbucks CEO Brian Niccol said in a statement.
The company will target underperforming stores, or those that can’t meet new design standards, for closing. The company is conducting a multi-year remodeling plan for 1,000 locations at a cost of $150,000 per store through 2026.
Keys to Starbucks’ restructuring
- Reduce store count by 434 locations, or 1%, by the end of fiscal year 2025.
- Remodel 1,000 locations at $150,000 per store by the end of 2026.
Peet’s, which has over 250 locations in the U.S. with 199 corporate-owned stores, according to The E’ville Eye, closed California locations in Roseville in May, Sacramento Airport in September, and in Mill Valley in November.
The good news for Peet’s came in August as Keurig Dr Pepper revealed that it would buy the company’s parent JDE Peet’s for $18 billion in a transaction that is expected to close in the first half of 2026.
Compass Coffee closes a Washington, D.C., roastery and might file for bankruptcy protection by the end of the year.
Compass Coffee closes roastery, bankruptcy possible
And now, troubled Starbucks rival coffee chain Compass Coffee has agreed to vacate its Washington, D.C., roastery location and has indicated in court papers that it might file for bankruptcy protection by the end of the year.
The Washington, D.C.-based coffee company agreed to relinquish its roastery facility at 1401 Okie Street, almost three months after a D.C. Superior Court Associate Judge Leslie Meek in September ordered Compass Coffee to pay monthly rent while a landlord lawsuit against the tenant proceeded, according to the Washington Business Journal.
Judge rules against Compass Coffee
Compass Coffee’s landlord American Armed Forces Mutual Aid Association in September filed for a protective order to require the tenant to pay an initial payment of over $113,000 and then over $116,000 per month starting on Oct. 1, which the judge granted.
More closings:
- Casual Mexican restaurant chain closes more locations
- 79-year-old national trucking company closes down, no bankruptcy
- 65-year-old Home Depot rival shutters business permanently
The tenant had not paid rent since January 2025, according to court papers.
Both Compass Coffee CEO Michael Haft and the company’s lawyer Theodore B. Randles of Venable LLP indicated in September that the company would have to vacate the premises or possibly file for bankruptcy if the coffee chain couldn’t negotiate a rent reduction.
Compass Coffee owes over $1 million in back rent
Compass Coffee owes its landlord, American Armed Forces Mutual Aid Association, over $744,000 in rent and related fees, Washington Business Journal reported.
The coffee company also owes over $300,000 in back rent to the property’s previous landlord, Douglas Development Corp., according to a lawsuit filed by that landlord.
Compass Coffee was established in 2014 and currently operates 25 locations in Washington, D.C., Virginia, and Maryland.
Compass Coffee locations:
- 4710 Langston Blvd., Arlington, Va.
- 4300 Wilson Blvd., Arlington, Va.
- 4100 Wilson Blvd., Arlington, Va.
- 3003 Washington Blvd., Arlington, Va.
- 7393 Lee Highway, Falls Church, Va.
- 1201 Wilson Blvd., Arlington, Va.
- 4850 Massachusetts Ave. NW, Washington, D.C.
- 1351 Wisconsin Ave. NW, Washington, D.C.
- 2150 P St. NW, Washington, D.C.
- 849 18th St. NW, Washington, D.C.
- 1703 H. St. NW, Washington, D.C.
- 1827 Adams Mill Road NW, Washington, D.C.
- 1401 I St., Washington, D.C.
- 1924 14th St. NW, Washington, D.C.
- 1301 K Street NW, Washington, D.C.
- 555 13th St. NW, Washington, D.C.
- 435 11th St. NW, Washington, D.C.
- 1023 7th St. NW, Washington, D.C.
- 1921 8th St. NW, Washington, D.C.
- 1535 7th St. NW, Washington, D.C.
- 650 F St. NW, Washington, D.C.
- 1201 Half St., Washington, D.C.
- 821 I St. SE, Washington, D.C.
- 10400 Fairfax Blvd., Fairfax, VA.
- 4210 Knox Road, College Park, Md.
Related: Popular beer brand closes more taprooms after filing bankruptcy
