Category: News

Sumseron Coffee Emerging as a Sensational Kenyan Coffee Brand With Global Reach

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Nairobi, Kenya – Qahwa World

Sumseron Coffee, a Kenyan specialty coffee company, is rapidly gaining international recognition as it positions itself among Africa’s most promising coffee brands. With deep roots in Kenya’s coffee-growing heritage, the company is combining quality, sustainability, and innovation to bring premium Kenyan coffee to the world.

Founded by John Seroney, Sumseron Coffee has built its identity around farmer empowerment, environmental responsibility, and transparency across the supply chain. Each bean, sourced from Kenya’s lush highlands, carries not only flavor but also a story of culture and community.

“Our vision is to put Kenyan coffee on the global stage in a way that truly benefits farmers and captivates consumers,” said John Seroney, CEO of Sumseron Coffee. “We are not just exporting coffee; we are exporting a legacy, a culture, and a promise of excellence.”

Expanding Locally and Globally

At home in Kenya, Sumseron Coffee has become a trusted brand for medium and dark roast drinkers, while also supplying premium beans to cafés and roasters. Beyond Kenya, the company has established export networks across Europe, Asia, and North America, helping farmers tap into premium international markets.

Its growth strategy balances B2C engagement, through platforms like TikTok and Instagram to connect with younger coffee drinkers, and B2B partnerships with roasters, cafés, and distributors, offering both green and roasted coffee as well as consolidation services.

Sustainability at the Core

A defining feature of Sumseron Coffee is its sustainability agenda. The company ensures fair compensation for farmers, actively supports women in coffee, and prioritizes eco-friendly practices. Through partnerships and innovation, it is contributing to a circular coffee economy that aligns with global climate and sustainability goals.

Looking Ahead

With global demand for Kenyan coffee on the rise, Sumseron Coffee aims to scale its operations and compete with the world’s most iconic coffee brands. The company is currently seeking new partnerships and investments to accelerate its international expansion and strengthen its impact on farmers and communities.

About Sumseron Coffee

Sumseron Coffee is a purpose-driven Kenyan specialty coffee company dedicated to producing, processing, and marketing world-class coffee. Built on values of sustainability, transparency, and farmer empowerment, the brand continues to deliver the finest Kenyan coffee to markets worldwide — from Kenya to the World.

Coffee Prices Surge as ICE Inventories Hit Multi-Year Lows

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Dubi – Qahwa World

Coffee futures rallied sharply on Friday as shrinking exchange inventories and trade tensions tightened supply.

December arabica coffee (KCZ25) closed higher by +6.70 cents (+1.80%), while November robusta coffee (RMX25) gained +107 points (+2.61%). The spike followed reports of declining ICE-certified inventories. Arabica stocks fell to a 1.5-year low of 576,753 bags, while robusta inventories dropped to a 1.75-month low of 6,464 lots.

The pressure stems largely from the 50% U.S. tariffs on Brazilian coffee imports, which have curbed new contracts and reduced flows into the U.S. market. Brazil typically supplies about one-third of America’s unroasted coffee, making the tariffs a key bullish driver.

Weather and Crop Developments
Earlier last week, arabica fell to a one-month low after rains eased dryness in Minas Gerais, Brazil’s largest arabica-growing region. Somar Meteorologia reported that rainfall would persist through the week, though conditions remain below seasonal norms.

September is critical for coffee tree flowering, and earlier dryness had lifted futures to multi-month highs. Somar noted Minas Gerais received only 10.5 mm of rain in mid-September, about 73% of the historical average. Meanwhile, NOAA raised the likelihood of a La Niña system to 71% for October–December, a development that could intensify dryness and threaten Brazil’s 2026/27 crop.

Adding to supply concerns, Brazil’s crop forecasting agency Conab cut its 2025 arabica estimate by 4.9% to 35.2 million bags and lowered its total coffee output forecast to 55.2 million bags, down from 55.7 million in May.

Export Trends
Tightness in global supply is evident. The International Coffee Organization (ICO) reported July exports fell 1.6% year-over-year to 11.6 million bags, while cumulative exports for October–July were down 0.3% to 115.6 million bags.

Brazil’s shipments have slowed dramatically. The Trade Ministry said July unroasted exports fell 20.4% y/y to 161,000 MT, while exporter group Cecafe reported green coffee exports dropped 28% to 2.4 million bags. Arabica exports slid 21%, robusta plunged 49%, and cumulative January–July exports were down 21% to 22.2 million bags.

Vietnam’s Contrast
On the bearish side, Vietnam is expecting a bumper harvest. The world’s largest robusta producer forecasts a 6% increase in 2025/26 output to 1.76 MMT (29.4 million bags), a four-year high. Its coffee exports for January–August rose 7.8% y/y to 1.14 MMT, adding pressure to robusta prices.

Brazil’s harvest is nearly complete, with Cooxupe, the nation’s largest coffee co-op, reporting 98.9% finished as of mid-September. Meanwhile, the USDA’s Foreign Agriculture Service (FAS) projects world coffee production in 2025/26 will rise 2.5% to a record 178.7 million bags. That includes a 1.7% drop in arabica but a 7.9% increase in robusta output. Ending stocks are expected to climb 4.9% to 22.8 million bags.

Still, trader Volcafe forecasts a widening arabica deficit of -8.5 million bags for 2025/26, compared to -5.5 million this year—marking the fifth straight year of supply shortfalls.

92% of Germans Drink Coffee — But Habits Are Changing

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Berlin – Qahwa World

Coffee continues to dominate German daily life, making it the country’s favorite beverage. Yet recent surveys reveal that while consumption remains remarkably high, habits are shifting under the influence of age, inflation, and changing social values.

A 2025 survey by Ipsos Observer for Aral found that 92% of Germans drink coffee, with 68% consuming it daily. Despite these impressive figures, the share of daily coffee drinkers has fallen steadily over the past decade — from 76% in 2016 to 72% in 2018, and now 68% in 2025.

The same survey shed light on consumption patterns:

35% drink two cups a day,

27% three cups,

18% four cups,

9% just one cup.

When it comes to preparation, filtered coffee leads with 44%, followed by cappuccino (37.8%), café crema (33.9%), latte (29.7%), latte macchiato (26.4%), and espresso (22.2%). Milk preferences also show diversity: 37.8% prefer whole milk, 26.3% skimmed milk, 15.1% plant-based alternatives, and 13.5% condensed milk, while 25.2% drink it black. A majority — 60.1% — prefer no sugar.

Motivations reflect both necessity and pleasure. About 80% of Germans say caffeine is essential, with 42.2% admitting they find it hard to wake up without coffee, and 24.8% unable to start the morning without it. Yet for many, coffee is also a moment of enjoyment — 54.8% drink it for pleasure, 45.2% for relaxation, and 35.5% to fill breaks or enjoy personal time.

Inflation and shifting attitudes

A separate study by SINUS-Institut and OPINION, conducted in 2022 to mark World Coffee Day, emphasized the role of inflation and broader social changes. It showed that while 92% of Germans consume coffee, 15% reduced their intake due to rising prices. Younger Germans (under 40) and East Germans were particularly likely to cut back.

At the same time, many remain loyal to quality: 37% are still willing to pay more for good coffee, especially those with higher education. Sustainability is also a growing priority — about 30% prefer ethically sourced coffee, with support strongest among the so-called “Post-Materialist” milieu, who see coffee choices as part of their responsibility toward climate and society.

Consumption varies by age: Germans under 30 drink about seven cups a week, while those aged 60–69 drink more than 16 cups. A third of the population is open to trying new coffee types, with the most adventurous group being people in their thirties. About 20% describe coffee as a hobby, and nearly 19% place importance on having a state-of-the-art coffee machine.

In a comparative survey in Austria, drip coffee was far less popular (15%) than in Germany (34%), reflecting Austria’s stronger espresso culture. Inflation also had an impact there, with 18% reducing consumption, slightly more than in Germany.

Together, these studies show how coffee remains Germany’s most beloved drink, consumed by nearly the entire population. Yet economic pressures, generational differences, and evolving values are gradually reshaping how — and why — Germans enjoy their daily coffee.

Registration Opens for the 2025 UAE National Cup Tasters Championship

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Abu Dhabi – Qahwa World

The Specialty Coffee Association – UAE Chapter has announced the opening of competitor registration for the 2025 UAE National Cup Tasters Championship, which will take place during Global Food Week in Abu Dhabi from 21 to 23 October 2025.

This championship is one of the most important coffee competitions in the country, giving professionals and enthusiasts the opportunity to showcase their sensory skills in distinguishing coffee flavors and profiles under globally recognized standards.

Registration Requirements for Competitors

Residency in the UAE for at least two years with a valid residence visa.

Individual membership with the Specialty Coffee Association.

Registration fee: AED 1000.

For UAE Nationals:

Copy of passport.

Proof of SCA membership.

For Expats:

Copy of passport.

Copy of residence visa (both old and new, as proof of two years residency).

Proof of SCA membership.

Registration fee for expats: AED 1250.

Community Participation

The association is also inviting the UAE coffee community to take part by:

Volunteering to support the event.

Offering sponsorships.

Registration and Inquiries

Interested competitors must complete the registration form and upload the required documents via the link shared on the official account of the association.

For inquiries: [email protected]

Top 10 U.S. Cities Thriving in Coffee Culture

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Dubai – Qahwa World

Portland, Oregon, alongside several cities in Florida and California, has been named among the top destinations for coffee enthusiasts, according to new research by WalletHub. The study, released ahead of National Coffee Day on September 29, compared the 100 largest U.S. cities across 12 key metrics, from the number of cafés and coffee shops per capita to household spending and average coffee prices.

Coffee remains the most popular beverage among American adults after bottled water. A recent report from the National Coffee Association (NCA) revealed that 66% of U.S. adults drink coffee daily, consuming nearly three cups per person on average.

Portland Leads the Nation

Portland ranked first overall, thanks to what WalletHub described as “an extremely high number of affordable coffee shops rated at least 4.5 out of 5 stars.” The city also placed eighth for coffee shops per capita offering free Wi-Fi. On average, Portland households spend $192 annually on coffee, ranking 20th nationwide. Nearly a quarter of residents own an electric grinder, while 27% have single-cup brewing machines.

Orlando, Long Beach, Miami, and Seattle in the Top Five

Orlando, Florida, claimed second place with households spending more than $154 annually on coffee and a vibrant schedule of coffee events. The city also has the highest number of donut shops per capita, reinforcing its reputation as a hub for caffeine and sweet pairings.

Long Beach, California, came in third, driven by an active café scene and strong consumer interest in coffee searches online. Residents spend about $171 per year on coffee, and the city ranks high in ownership of espresso machines and grinders.

Miami, Florida, and Seattle, Washington, rounded out the top five, highlighting the diversity of coffee cultures across different regions of the country.

Broader Coffee Trends Across the U.S.

Pittsburgh, Pennsylvania, was noted for having the most cafés per capita, while New York City had the fewest. Other cities including Las Vegas, Honolulu, San Diego, and San Francisco tied for first in terms of affordable, highly rated coffee shops per capita.

Industry experts said the findings reflect not just availability but also deeper cultural shifts. John Surdyk, director at the Wisconsin School of Business, highlighted how higher quality beans, improved roasting, and drink customization have transformed coffee into a premium cultural product. He also pointed to the influence of social media and the pandemic in reinforcing at-home coffee habits.

Erick P.C. Chang, associate professor at Arkansas State University, added that younger generations increasingly view coffee and tea as healthier alternatives to sugary soft drinks, with lower alcohol consumption trends further driving demand. He noted that the rise of Starbucks, ready-to-drink products, and single-serve machines like Keurig and Nespresso has brought café-quality coffee into homes nationwide.

Top 10 U.S. Cities for Coffee Lovers

  • Portland, Oregon
  • Orlando, Florida
  • Long Beach, California
  • Miami, Florida
  • Seattle, Washington
  • Tampa, Florida
  • San Francisco, California
  • Austin, Texas
  • Oakland, California
  • Pittsburgh, Pennsylvania

Source: WalletHub study of the 100 largest U.S. cities across 12 coffee-related metrics.

Health Differences Between Hot, Cold, and Iced Coffee

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Dubai – Qahwa World

A recent study, drawing on data from Free Well Health and scientific research published in the journal Foods (Thomas Jefferson University – 2020), revealed clear differences between hot, cold, and iced coffee in terms of health value, flavor profile, and caffeine levels.

The study noted that all three types contain important antioxidants, but choosing the most suitable one depends on individual factors such as caffeine tolerance, preparation method, and additives like sugar and milk, which can increase calorie content and turn coffee into something closer to a liquid dessert.

Acidity and Nutritional Value

The research showed that cold brew coffee is slightly less acidic than hot brew at the same roast level, but the difference did not exceed 0.2 to 0.34 pH units. Darker roasts had the most significant effect in reducing acidity, making them a better choice for those sensitive to acids.

Hot coffee was also found to be richer in antioxidants, with levels remaining stable even with darker roasts. In contrast, antioxidant capacity in cold brew decreased as roast levels darkened. The study also revealed that hot coffee contained higher total dissolved solids (TDS), giving it a fuller body and more pronounced flavors, while cold brew offered a smoother texture and lower acidity, making it gentler on the stomach and teeth. Iced coffee, meanwhile, is essentially hot coffee that has been cooled and served with ice, offering refreshment without major changes in nutritional value.

Caffeine content remained similar across all three types when brewed in the same proportions, with averages of about 205 mg in a large cold brew compared to roughly 165 mg in iced coffee, while hot coffee was closer to the iced version. This indicates that cup size and coffee-to-water ratio play a bigger role in caffeine strength than the brewing method itself.

What Does This Mean for Coffee Lovers?

For those who want less acidity: A medium or dark roast is the best option, with cold brew providing a slightly lower acidity than hot.

For those focused on antioxidants: Hot brewing remains more consistent across roast levels.

For those seeking smoothness and mildness: Cold brew delivers a softer texture and lower acidity but is generally less concentrated.

For those worried about caffeine: There’s no major difference between hot and cold brews; cup size and ratio matter more.

In conclusion: The main differences among hot, cold, and iced coffee lie in acidity, antioxidant content, and texture, while caffeine remains largely unchanged — giving consumers the freedom to choose based on taste preference and health needs.

Coffee Tasting in Colors… An Innovative Experience in Dubai

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Dubai – Qahwa World

I received an invitation from my friend Kobi Tolentino to attend an unusual coffee tasting session. In his invitation, he referred to it as a “coffee tasting in colors”—something I had never heard of before. Upon arriving at the venue, Scarab Café in Al Qusais, Dubai, it became clear that I was about to experience something entirely new: a modern approach to coffee designed by this young company to introduce people to coffee and make the selection process easier through the use of colors.

The event began with a welcoming speech by Mr. Walid Ibrahim, the company’s General Manager. He spoke about his technical background and how he entered the world of coffee, recalling his very first business venture, which started within his family when he persuaded them to buy his personal computer. At that time, the price of a computer was equivalent to that of a small car, like a Fiat—an important investment and a big step for them.

He explained: “I felt capable of achieving something, and from that moment I began. I worked for a while as an entrepreneur in the tech field, and coffee was not initially the main activity I envisioned. But about fifteen years ago, my passion for coffee gradually began to grow, until I felt I could do something real in this field, even if I wasn’t sure exactly what it would be.”

He added: “About eighteen months ago, I realized the time had come to take bold steps, and I decided to turn the ‘Escara’ project into a tangible reality rather than just an idea on paper. That’s where the journey began—early attempts to discover what we could offer, and to identify what would set us apart in the market. We didn’t want to be just another roastery or café.”

He continued: “In fact, it all started in my garage with the team, just like any other startup. We experimented and tasted what we could produce. We invested heavily in ourselves, buying coffee and equipment on our own. Even the large roasting machine took between nine and eleven months to be manufactured and delivered. It took time and effort, but we brought everything together and made it happen here.”

He concluded: “What we aim to provide is not just coffee, but an entirely different experience. We focus on transforming the customer’s journey with coffee, and everything we do revolves around that. The customer is at the core of our work, and we care about them 100%.”

Afterwards, our friend Kobi Tolentino guided us through an engaging lecture, followed by a practical exercise: a coffee tasting in colors. We began to connect colors with flavors and discovered how colors could open up a new gateway to sensory evaluation and a deeper understanding of the coffee world. The experience was truly fascinating and demonstrated how innovation can add an entirely new dimension to coffee culture in Dubai and the wider region.

As Kobi Tolentino noted during the lecture: “Colors are not a substitute for established tasting standards, but rather a simple and friendly entry point that helps people express what they taste more easily.”

Project Background

The idea of “coffee in colors” combines traditional sensory evaluation with color associations to create a more accessible and engaging experience for the public. Research conducted by Scarab revealed that the color brown dominates most tasting sessions, linked to fundamental notes like roast, nuts, and cocoa. By contrast, yellow emerged as a marker of bright acidity in coffees from Honduras and Costa Rica, while pink was tied to delicate floral and fruity notes in some Colombian Gesha varieties.

More “exotic” colors, such as blue and purple, also appeared, representing freshness and dark fruit notes. However, they rarely dominated the tasters’ perceptions. Through this framework, Scarab aims to make evaluation more intuitive, inclusive, and precise, while maintaining professional standards in specialty coffee.

Dubai as a Hub for Coffee Innovation

This experience is not an isolated case. Dubai has become a regional hub for specialty coffee, hosting competitions, championships, and a wave of innovations that are reshaping the way coffee is understood and enjoyed. The “coffee in colors” initiative is a distinctive addition, proving that the city is not only a meeting place for coffee lovers but also a true laboratory for innovative ideas that could redefine the future of the industry.

China Coffee Market Set to Surpass $45 Billion by 2032 as Demand Soars

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Dubai – Qahwa World

China’s coffee market is experiencing a remarkable surge, driven by shifting consumer habits and rapid retail expansion. The market was valued at USD 20.9 billion in 2024 and is projected to more than double to USD 45.5 billion by 2032, reflecting a compound annual growth rate (CAGR) of 10.19% between 2025 and 2032. This growth marks a profound transformation in a country long dominated by tea culture, positioning coffee as a rising force in the beverage sector.

Coffee production in China is concentrated in Yunnan, which accounts for over 60% of national output, followed by Hainan and smaller contributions from Fujian. Despite these efforts, the domestic supply remains insufficient to meet demand, leaving the country heavily reliant on imports. This has prompted both government agencies and private companies to invest in research and development aimed at boosting productivity and improving quality. Instant coffee continues to hold the largest market share due to its convenience, while ground coffee and whole beans are expanding as consumer tastes diversify.

Retail competition is intense, with international and domestic chains reshaping the landscape. Starbucks now operates more than 3,300 stores across China, while Luckin Coffee is racing ahead with plans to open 10,000 outlets, supported by a digital-first model tied to WeChat. This strategy not only simplifies ordering but also enables data-driven insights into consumer behavior. Meanwhile, Manner Coffee has captured younger professionals by pricing its drinks up to 40% lower than Western rivals and offering eco-conscious incentives such as discounts for reusable cups. Costa Coffee, on the other hand, leans on product localization, tailoring flavors to match regional preferences, with noticeable differences between its Beijing and Shanghai menus.

E-commerce has emerged as a critical growth driver, with Alibaba’s Tmall commanding a 56.6% share of online coffee sales, followed by JD.com at 24.7%. This dominance highlights the growing importance of digital platforms as consumers increasingly purchase both imported and domestic coffee products online.

The competitive landscape is anchored by major global and local players including Nestlé, Starbucks, Luckin Coffee, Gloria Jean’s, Kraft Heinz, Coca-Cola, JAB Holding, and Luigi Lavazza, alongside domestic firms such as Hainan LISUN and Dehong Hogood Coffee. Each is striving to consolidate its position through geographic expansion, product innovation, and stronger consumer engagement strategies.

Looking ahead, analysts predict that growth will not only be quantitative but also qualitative, as trends in sustainability, functional beverages like protein coffee, and digital integration reshape the industry. With a projected CAGR of 10.19% and consumer demand accelerating at unprecedented speed, China is on track to establish itself as a global powerhouse in the coffee industry, blending its growing domestic production with a robust import market to satisfy a rapidly evolving consumer base.

International Coffee Organization Launches Comprehensive Guide to Celebrate International Coffee Day 2025

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Dubai – Qahwa World

The International Coffee Organization (ICO) has released a comprehensive guide to help individuals and institutions celebrate International Coffee Day 2025, taking place on October 1st under the theme “More Than Ever: Embracing Collaboration for Collective Action.” The guide highlights that coffee is not just a beverage, but a symbol of cooperation and collective effort, from the farm to the consumer’s cup.

What Does the Guide Include?

The ICO has prepared a communications toolkit featuring:

✅ Customizable campaign images

✅ Social media graphics

✅ Posters and banners

All materials are available in English, French, Spanish, and Portuguese, and can be downloaded directly from the ICO’s official website to help spread a unified global message.

Join the Campaign with #ICD2025

The ICO invites everyone to participate in the digital campaign by completing the phrase:

“Coffee is Collaboration because…”

and sharing it across social media platforms using the official hashtag #ICD2025.

The Message for 2025

In its statement, the ICO emphasized: “The true power of the coffee sector lies in the unity of all its actors – from producers to consumers. Collaboration is what makes coffee a vital part of solutions to economic and social development. In 2025, a year full of challenges, we reaffirm our commitment to walk side by side for the common good.”

A Global Call to Action

Through this guide, International Coffee Day becomes more than a symbolic celebration. It offers practical tools and opportunities for engagement, from sharing campaign visuals and organizing local events to telling personal coffee stories that reflect the spirit of collaboration.

With this guide, the ICO empowers everyone — from cafés and companies to individuals — to join the global movement of celebrating coffee and embracing collaboration more than ever.

From America to Europe: Starbucks Continues Store Closures

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Dubai – Qahwa World

In less than two days, Starbucks’ downsizing plan has expanded from North America to Europe. After announcing yesterday the closure of hundreds of stores in the United States and Canada, the company today revealed further closures in the UK, Switzerland, and Austria, underscoring the challenges facing the world’s largest coffee chain.

Starbucks’ EMEA division confirmed that a review of its company-owned stores in Europe, the Middle East, and Africa has resulted in a decision to shutter outlets in three key European markets. The company did not disclose how many stores will close or the exact timeline but stressed the move is part of a broader strategy to align store formats with customer traffic and profitability.

This announcement comes just one day after the company said it would close around 400 stores in the U.S. and Canada and cut 900 non-retail jobs as part of a $1 billion restructuring plan. Read yesterday’s report here

Numbers Tell the Story

Starbucks currently operates nearly 5,000 stores across 42 countries in the EMEA region. The UK is its largest market, with 1,416 stores (521 company-owned). Switzerland has 49 company-owned outlets, while Austria operates 21.

The financial strain is evident in recent results: UK revenues fell 4% year-on-year to £525.6m ($668.9m) for the year ending September 2024, with a pre-tax loss of £35.2m ($44.8m). Across EMEA, revenues declined 9%, gross profit fell 5%, and operating profit dropped 16%.

“Back to Starbucks” Strategy

The closures form part of CEO Brian Niccol’s Back to Starbucks strategy, first launched in late 2024, which aims to return the brand to its “coffeehouse roots.” The strategy emphasizes simpler menus, stronger barista engagement, and encouraging customers to spend more time in stores.

Despite the retrenchment, Starbucks insists it remains committed to expansion. The company plans to open 80 new UK stores and 150 additional EMEA outlets by the end of the current fiscal year on 30 September 2025, with a pledge to return to net positive store growth across the region in 2026.

Nestlé Appoints Alfonso Gonzalez Loeschen as New Nespresso CEO

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Nestlé has named Alfonso Gonzalez Loeschen as the new CEO of Nespresso, effective 1 November 2025.

Loeschen, who has served as CEO of Nespresso North America since January 2020, succeeds Philipp Navratil. Earlier this month, Navratil was promoted to CEO of Nestlé Group following the dismissal of Laurent Freixe.

Since joining Nestlé in 1992, Loeschen has held multiple senior positions, including General Manager for Nestlé Puerto Rico (2012–2014) and Chief Marketing Officer at Nespresso (2015–2019). With his new role, he will also join Nestlé’s Executive Board.

Under his leadership in North America, Nespresso successfully expanded its Vertuo system across the US, Canada, and Mexico, achieving double-digit growth in both sales and volume. Nestlé praised Loeschen’s track record, citing his ability to drive performance and inspire teams.

“Alfonso’s extensive expertise and deep understanding of the portioned coffee category, along with his results-focused approach and talent to inspire teams, will enable him to drive performance and execution,” said Navratil.

Founded in 1985, Nespresso now operates in 81 markets and runs more than 800 retail boutiques across 76 countries.

The appointment is the latest in a series of leadership changes at Nestlé. In addition to Freixe’s dismissal and Navratil’s promotion, Nestlé announced that Pablo Isla will take over as Chairman on 1 October 2025—seven months earlier than planned—after Paul Bulcke agreed to step down following investor pressure over his leadership and decision-making.

Starbucks to Close Hundreds of Stores and Cut Thousands of Jobs in a $1bn Austerity Plan

Posted on by Qahwa World

Starbucks is preparing to write off $1bn in costs and assets by closing hundreds of stores in North America and making further corporate layoffs.

Between June and the end of September, 400 US and Canada stores deemed unprofitable and unsuitable for refurbishment were closed or slated for closure. US store managers will find out this week if their outlet has been added to the list, extending cuts that have so far focused on takeaway-only stores.

However, in an open letter to employees, Starbucks CEO Brian Niccol announced that hundreds more sit-in stores deemed unsuitable for refurbishment under the Back to Starbucks strategy would also close. Starbucks has sought to move away from “overly transactional” takeaway stores and focus on longer dwell-time visits and more personalised service as part of a major strategy to reverse faltering sales in the US.

“We have identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said in his letter.

Niccol forecasts that Starbucks will end its fiscal year with nearly 18,300 company-operated and licensed stores across North America, down from 18,734 at the end of its third quarter ended 30 June 2025. The Seattle-based coffee chain, which has posted six consecutive quarters of like-for-like sales decline in the US, plans to return to positive outlet growth across North America next year, as well as modernise more than 1,000 US stores — 10% of its company-owned US locations.

Niccol has also announced further layoffs, just seven months after announcing plans to cut 1,100 corporate jobs across its global business. Approximately 900 non-retail roles will be axed as the coffee chain seeks to prioritise investment in retail operations.

“These steps are to reinforce what we see is working and prioritise our resources against them. We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Niccol added.

In a separate SEC filing, Starbucks said $450m of the total $1bn costs will be allocated to exiting leases early, with a further $400m on the disposal of company-operated store assets. The remaining $150m will be allocated to severance and staff support packages.

In July 2025, Starbucks reported 2% year-on-year net revenue growth in North America to reach $6.9bn. However, the coffee chain saw third quarter like-for-like sales and comparable transactions both declined.