Starbucks closes two downtown Boston locations amid nationwide restructuring
Starbucks has shut two downtown Boston stores as part of a $1 billion restructuring plan, leaving vacant storefronts and prompting a shift toward independent coffee shops.
Starbucks announced the closure of its 125 Summer Street and 8 North Market Street locations in downtown Boston, adding to nearly 20 stores the chain shut across Greater Boston last year. The closures are part of a $1 billion restructuring effort launched in 2023 that includes shutting down hundreds of U.S. and Canadian stores and laying off 900 corporate employees to improve profitability.
Chief executive Brian Niccol said the moves aim to retain only profitable locations and enhance the customer experience at remaining stores. The company’s spokesperson emphasized that closures are based on “objective criteria, including long-term performance and customer experience.”
The shutdowns have left some storefronts empty for over a year, including a historic corner building in Government Center that still retains the lease and continues to pay rent, according to Atlantic Retail partner Ben Ravelson.
Local residents and former customers have turned to independent cafés. Calvin Cestari, a downtown marketing professional, now frequents Espresso Love, saying he avoids Starbucks for his own sanity. Business analyst Sara Osborn, who began boycotting the chain after labor disputes, now subscribes to a competing cold-brew service. Public-health worker Lia Kahan noted that she “votes with [her] money” by supporting local businesses.
Industry observers note that Starbucks is reducing its presence in dense urban cores while expanding suburban and drive-through formats, where labor and rent costs are lower. Michael Ashley Schulman of Cerity Partners said closing weaker stores can redirect loyal customers to better-equipped locations. Tufts University professor William A. Masters added that smaller, take-out-oriented stores have proven less profitable than traditional cafés.
Despite the closures, Boston’s coffee market remains active. Locally owned Tradesman Coffee Shop & Lounge opened a fourth location near South Station, and other chains such as Blank Street Coffee and MOTW Coffee & Pastries are securing downtown real estate. City data show roughly 40 new brick-and-mortar coffee shops opened across Boston in 2025, though only a few are downtown.
Former Starbucks founder George Howell, whose own specialty-coffee shop on Washington Street is experiencing high demand, said he often has to wait in the lobby of the adjacent hotel for a seat.