The holiday season always brings out specialty coffee drinkers, whether they’re fans of Starbucks Peppermint Mocha or Caramel Brulée Latte, or perhaps Peet’s Dubai Style Chocolate Matcha or Pistachio CBOL.
The wait for one of these holiday treats in coffee shops or in car lanes may take longer than normal due to higher demand this time of year.
But many customers think it’s 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 is planning hundreds of store closings. Peet’s has also closed several locations, but has some good news on the horizon.
Starbucks revealed in September that it would cut its North American store count by about 1 percent, or from 18,734 stores to 18,300 by the end of fiscal 2025, as part of a restructuring that is expected to cost the coffee giant $1 billion.
Starbucks reviewed its North American portfolio earlier this year to determine which locations it would close.
“During our review, we identified coffee shops where we cannot create the physical environment our customers and partners expect, or where we do not 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 cannot meet the new design standards, for closure. The company is undertaking a multi-year remodeling plan for 1,000 locations at a cost of $150,000 per store through 2026.
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Reduce store count by 434 locations, or 1%, by the end of fiscal 2025.
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Remodel 1,000 locations at $150,000 per store by the end of 2026.
Peet’s, which has more than 250 U.S. locations with 199 company-owned stores, according to The E’ville Eye, closed California locations in Roseville in May, Sacramento Airport in September and Mill Valley in November.
The good news for Peet’s came in August, when Keurig Dr Pepper revealed it would buy parent JDE Peet’s for $18 billion in a deal expected to close in the first half of 2026.
And now rival Starbucks coffee chain Compass Coffee has agreed to exit its Washington, DC roasting location and indicated in court papers that it may file for bankruptcy protection by the end of the year.
The Washington, D.C.-based coffee company has agreed to give up roasting at 1401 Okie Street, nearly three months after D.C. Superior Court Associate Justice Leslie Meek ordered Compass Coffee in September to pay monthly rent while a landlord-tenant lawsuit was pending, according to the Washington Business Journal.
Compass Coffee’s owner, the American Armed Forces Mutual Aid Association, filed a protective order in September requiring the tenant to pay an initial payment of more than $113,000 and then more than $116,000 per month starting Oct. 1, which the judge granted.
More closures:
The tenant had not paid rent since January 2025, according to court documents.
Both Compass Coffee CEO Michael Haft and the company’s attorney, 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 could not negotiate a rent reduction.
Compass Coffee owes its landlord, the American Armed Forces Mutual Aid Association, more than $744,000 in rent and related taxes, the Washington Business Journal reported.
The coffee company also owes more than $300,000 in back rent to the property’s previous owner, Douglas Development Corp., according to a lawsuit filed by that owner.
Compass Coffee was founded in 2014 and currently operates 25 locations in Washington, DC, Virginia and Maryland.
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4710 Langston Blvd., Arlington, Va.
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4300 Wilson Blvd., Arlington, Va.
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4100 Wilson Blvd., Arlington, Va.
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3003 Washington Blvd., Arlington, Va.
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7393 Lee Highway, Falls Church, Virginia.
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1201 Wilson Blvd., Arlington, Va.
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4850 Massachusetts Ave. NW, Washington, DC
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1351 Wisconsin Ave. NW, Washington, DC
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2150 P St. NW, Washington, DC
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849 18th St. NW, Washington, DC
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1703 H. St. NW, Washington, DC
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1827 Adams Mill Road NW, Washington, DC
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1401 I St., Washington, DC
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1924 14th St. NW, Washington, DC
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1301 K Street NW, Washington, DC
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555 13th St. NW, Washington, DC
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435 11th St. NW, Washington, DC
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1023 7th St. NW, Washington, DC
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1921 8th St. NW, Washington, DC
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1535 7th St. NW, Washington, DC
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650 F St. NW, Washington, DC
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1201 Half St., Washington, DC
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821 First St. SE, Washington, DC
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10400 Fairfax Blvd., Fairfax, VA.
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4210 Knox Road, College Park, Md.
Related: Popular pizza and beer brand closes locations after bankruptcy
This story was originally published by TheStreet on December 19, 2025, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.