Starbucks is struggling—why are they opening so many stores?

A coffee empire that grew 400% in a decade — now closing thousands of stores while opening thousands more.

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By The Numbers

40,000

stores worldwide today

-6%

same-store sales decline

60%

prep time increase

What They Nailed Early

Became America's third place when people lost community anchors. Paid premium for the best real estate. Turned $0.30 coffee into a $5 achievable luxury for millennials squeezed by the Great Recession.

What Changed

Menu complexity exploded — prep times up 60%. Stores got tired, bathrooms locked, the third-place vibe died. Inflation squeezed customers while new competitors (Luckin, Dutch Bros) carved up the pie. China sales dropped despite massive focus.

Where it Landed

CEO fired after 15 months. Stock pummeled. Same-store sales down 6%. New CEO Brian Niccol (Chipotle turnaround architect) brought in with $10M signing bonus. Green shoots appearing, but years of fixes ahead.

The Principles

Complexity kills throughput. When customization slows service 60%, your convenience product stops being convenient.

The third place isn't optional — it's the moat. Lock bathrooms and let stores smell bad, and customers find another home.

Growth hides everything until it doesn't. Expanding store count can mask same-store decline — until investors notice.

Builder's Takeaway

If you're running a location-based business, watch for:

•

Menu bloat that turns baristas into chemists and tanks speed

•

Deferred maintenance — tired stores signal you've stopped caring

•

Growth masking unit economics — new stores can't fix broken ones

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