The daily cup of coffee is a major tradition among Americans, with about 51% of people purchasing their favorite drink from a coffee shop at least once a week, according to a World Coffee Portal report in 2025.
Many of those coffee drinkers purchase their drinks at Starbucks, which has the highest share of the coffee chain market in the U.S., with about 40% of the industry’s business, according to the report.
The coffee chain has launched a program to reduce its store count to eliminate underperforming locations that are a drag on profits.
Starbucks began the program, “Back to Starbucks,” in 2025 to establish the brand’s identity as a “third place” between home and work. The move focuses on returning to its roots, while creating a more personalized and welcoming coffeehouse experience.
The program, however, involved significant cost-cutting measures, including widespread closures and layoffs.
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Starbucks closes San Jose locations
As part of that program, Starbucks has closed all of its coffeehouses in downtown San Jose, Calif., except for one location across from City Hall, and a limited-hours store on the San Jose State University campus.
The Seattle-based coffee shop chain closed its store at 150 S. First Street near the light-rail line in San Jose on April 4, the San Jose Mercury reported. It was the sixth San Jose Starbucks to close after the coffeehouse chain closed five locations in the city in 2025.
San Jose has 42 Starbucks locations
San Jose Starbucks lovers don’t have to worry, however, since the coffeehouse chain has 42 locations within the city limits, according to its store locator.
The two downtown Starbucks are located at 181 East Santa Clara St. and at the San Jose State University Student Union, 211 South 9th Street.
Starbucks permanently closed an underperforming location on West Santa Clara Street in San Jose in January 2025, according to the Mercury.
Widespread closure strategy
The chain closed four more locations later in 2025 at South Bascom Avenue, in Silver Creek Plaza on East Capital Expressway, in River Oaks Plaza on River Oaks Parkway, and on Bernal Road in San Jose, as part of the company’s corporate “Back to Starbucks” strategy that includes store upgrades and widespread closures and layoffs.
The coffee shop chain also closed five stores in other Santa Clara County cities near San Jose in 2025, including on Agnew Drive in Santa Clara, Calif., Homestead Road in Cupertino, Calif., Ranch Drive in Milpitas, Calif., and Pear Avenue and Charleston Ave., both in Mountain View, Calif., San Jose Spotlight reported.
Starbucks also scheduled five Seattle-area locations for closing in April.
“We regularly review how our coffeehouses serve their neighborhoods and if they are meeting customers where they are. Sometimes that means investing in updates or trying new formats,” Starbucks spokesperson Jaci Anderson said in a statement. “Other times, it means making the difficult decision to close a location that no longer fits how people in that community live, work, or gather.”
All pick-up stores eliminated
Starbucks revealed in August 2025 that it would close all 90 of its pick-up-only locations nationwide in high-traffic areas, such as airports, hospitals, and busy city centers, as part of the “Back to Starbucks” program.
Pickup-only stores, which Starbucks introduced in 2019, allowed customers to place mobile orders, pay in-app, and quickly collect purchases without waiting in line. This model focused on speed and convenience while helping the brand expand its store fleet with a much smaller investment.
Starbucks announced in September 2025 that it would have a net reduction in stores by 434 stores or about 1% from 18,734 stores to 18,300 company-owned and licensed locations across the U.S. by the end of its fiscal year on Sept. 28, 2025.
Closed San Jose Starbucks:
- 150 S. First Street
- 1574 Bascom Ave.
- 1847 E. Capital Expressway
- 670 River Oaks Parkway
- 125 Bernal Road
- 145 W. Santa Clara St.
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