Starbucks Plans to Double Its Stores in the U.S.

Despite ‘lackluster’ Q4 results, the retailer has ‘a clear plan’ according to its CEO.

January 31, 2025

Starbucks’ Q4 revenues and same-store sales were lackluster, reported the New York Times. “Global same-store sales slipped 4% in the first quarter of the company’s fiscal year 2025, which ended on December 29. Declining traffic, a longstanding issue, continued to be a problem: Same-store sales in the United States fell 4%,” wrote the Times.

While fewer customers came to stores, customers spent more for what they did buy, which helped keep revenues flat from year-ago levels, at $9.4 billion, the company said after the market closed on Tuesday.

“The company’s net income fell nearly 23%, to $780 million from $1 billion a year earlier. Starbucks attributed that dip partly to investments it made in wages and benefits for store employees, as well as to its termination of the practice of charging more for nondairy products, such as oat and soy milks, in its beverages,” wrote the Times.

“Despite near-term challenges, we have significant strengths and a clear plan,” CEO Brian Niccol said on an earnings call. “We’re on track to turn the business around. We’re where we want to be one quarter in, but much of our work is just beginning.”

According to the Times, Niccol surprised many analysts by saying he had a plan to double the number of stores in the United States but provided no timeline for that expansion. “Places like Texas, the Southeast. As we continue to open stores in those areas, they are opening with great economics,” Niccol said.

This comes after Niccol has “pledged to bring back a more personal coffeehouse atmosphere with comfortable seating and the cafe experience for which Starbucks was originally known. Changes also include allowing baristas to quickly serve brewed coffee to customers at the register and bringing back the condiment station, allowing customers to add their own milk and sweeteners.

Earlier this month, Starbucks rolled out a new code of conduct at its cafes across North America, aiming to improve guests’ and staff’s safety and experience. Included in the shift is a reversal of a nearly seven-year policy of allowing the general public to linger in the store or use the bathroom, regardless of whether they buy anything.