Starbucks closed its Capitol Hill Reserve Roastery and its SoDo Reserve store in September 2025. The company said it was shutting locations that could not provide the coffeehouse environment it wanted or show a clear path to financial performance. Starbucks has not disclosed a Roastery-specific financial reason, so the broader criteria do not establish exactly why that particular site was selected.
What happened to the Seattle Roastery?
Starbucks’ September 25, 2025 hometown statement named the Capitol Hill Reserve Roastery and Starbucks Reserve in SoDo among the Seattle locations closing. The flagship was at 1124 Pike Street. GeekWire reported that it had opened in December 2014, making it nearly 11 years old when it closed. GeekWire’s report described the original project as a $20 million development in a former 1920s-era auto showroom; that figure is an opening-era project-cost report, not a disclosed closure cost. Starbucks’ hometown statement confirmed the two closures.
Why did Starbucks say it was closing locations?
Starbucks framed the closures as part of its Back to Starbucks review. In a September 23, 2025 filing, the company said it assessed whether each coffeehouse had a viable path to a physical environment consistent with the brand and a clear path to financial performance. Locations that did not meet those criteria would close. The SEC filing describes the portfolio-wide criteria, not a Seattle Roastery-specific finding.
CEO Brian Niccol’s September 25 message to employees likewise cited locations where Starbucks could not create the environment customers and partners expected or did not see a path to financial performance. The company did not publish the Roastery’s sales, profits, or a detailed site-level explanation. It would therefore be inaccurate to treat either criterion as a confirmed, specific cause for closing the Capitol Hill location. Niccol’s message also described the wider changes planned at the time.
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What made the Roastery tech-infused?
Opening-era reporting described technology and specialized equipment built into the customer experience. GeekWire reported that the site used sensors to prevent coffee-bean cross-contamination, a 4K projector to display coffee-farm footage on smart glass, and two roasters programmed to heat different beans for different durations and at different temperatures. It also listed Clover, pour-over, coffee press, Chemex, siphon, and cold-brew preparation methods. The reporting documents features of the Roastery; it does not establish that the technology contributed to the closure.
How did the Seattle closures fit into Starbucks’ restructuring?
Company plans announced in September 2025
Niccol said Starbucks would eliminate approximately 900 non-retail partner roles and close many open positions, while shifting resources closer to coffeehouses and customers. He also estimated that the company-operated North American store count would decline by about 1% in fiscal 2025 after openings and closures, said Starbucks planned to grow its operated coffeehouse count in fiscal 2026, and set a goal of uplifting more than 1,000 locations over the following 12 months. Those were plans and estimates stated in 2025, not proof of completed outcomes.
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Estimated restructuring costs
Starbucks’ September 2025 SEC filing estimated approximately $1 billion in restructuring costs across store closures, support-organization changes, and other restructuring activities. Its estimated components were approximately $150 million in employee separation benefits, $400 million in disposal and impairment of company-operated store assets, and $450 million primarily in accelerated lease-asset amortization and other lease costs. These are company estimates for the broader restructuring, not costs attributed to closing the Seattle Roastery alone. The filing cautioned that the timing and amounts were subject to risks and uncertainties.
Later Reserve and Roastery changes
Starbucks’ fiscal 2026 third-quarter filing described further restructuring, including actions to reduce the future operational complexity of Reserve and Roastery locations. It reported 247 store closures over the three quarters ended June 28, 2026 under fiscal 2025 restructuring plans. The filing also said North American closures under that plan were substantially completed in fiscal 2025, with most international closures completed in fiscal 2026’s first quarter. The company’s Form 10-Q provides the later accounting and restructuring update.
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A separate North American closure plan in 2026
On September 24, 2026, COO Mike Grams said Starbucks planned to close approximately 250 more North American coffeehouses—around 1% of its more than 18,000 locations—as part of a later portfolio review. The company’s announcement did not identify the Seattle Roastery as part of that action; it should not be conflated with the September 2025 closures. Grams’ 2026 message states the later plan.
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