Starbucks Closes Downtown Boston Cafes as Customers Face Long Waits

Starbucks has sharply reduced its presence in downtown Boston, concentrating customers at its remaining cafe at 84 State St., where mobile and in-person orders have created waits exceeding 30 minutes. The closures, part of a broader corporate restructuring, have also left some prominent commercial storefronts vacant and prompted former customers to turn to independent coffee shops.

The coffee chain recently closed two downtown locations at 125 Summer St. and 8 N. Market St. near Faneuil Hall. Those shutdowns followed the closure of nearly 20 Starbucks locations across Greater Boston last year, according to The Boston Globe.

Nationally, Starbucks launched a $1 billion restructuring effort last year, closing hundreds of stores in the United States and Canada and laying off 900 corporate employees. The company said the changes aim to address sluggish sales, long customer waits and the financial performance of individual locations.

At the remaining State Street cafe, more than 40 drinks can accumulate on the pickup counter during busy weekday mornings. Customers who order through the mobile app compete for space with office workers placing orders in person, creating congestion inside the small shop.

Calvin Cestari, a downtown resident who works in marketing and previously visited Starbucks daily, has switched to the locally owned Espresso Love because of the experience at the remaining location.

"I've had it," said Calvin Cestari, a downtown resident who works in marketing and was once a daily Starbucks customer.

Cestari said the prospect of enduring the crowded cafe has changed his willingness to visit the chain.

"I'm not going [there] for my own sanity," said Cestari.

Michael Ashley Schulman, a partner at wealth management firm Cerity Partners who previously managed a Starbucks cafe while in college, said the chain's expansion had allowed its locations to compete for the same customers. He argued that closing weaker stores could redirect demand toward nearby cafes better equipped to handle it.

"Starbucks spent two decades behaving like a music artist who parks a dozen tracks on the Hot 100 and then wonders why none of them hit number one: cannibalization," said Michael Ashley Schulman, a partner at Cerity Partners.

Schulman also said Starbucks has retreated from other dense urban markets, including downtown San Francisco, while expanding toward suburban locations and drive-through formats, where rent and labor costs can be lower.

Mobile ordering has added operational pressure by requiring employees to manage digital and walk-in orders simultaneously. Starbucks founder Howard Schultz has previously described the resulting pickup-area congestion as a "mosh pit."

William A. Masters, a professor of food policy and economics at Tufts University, attributed part of the company's difficulties to its shift toward smaller, takeout-oriented outlets rather than traditional cafes designed for customers to spend time inside.

"Those locations turned out to be less profitable than their earlier outlets," said William A. Masters, a professor of food policy and economics at Tufts University.

Labor disputes have also influenced some customers' decisions to leave the chain. Five Starbucks locations that closed locally last year were unionized, including a cafe on Commonwealth Avenue near Boston University where employees staged a lengthy strike in 2022. Labor supporters said the closures appeared to disproportionately affect unionized stores.

Starbucks rejected the suggestion that union status influenced its national closure decisions, saying it evaluated locations using business-related criteria.

"These store closures are being implemented through a thoughtful, lawful process. We used an objective set of criteria, including long-term performance and customer experience," a Starbucks spokesperson told The Boston Globe in a statement.

The spokesperson did not answer follow-up questions about the specific Boston-area closures or the company's broader strategy for the city.

Sara Osborn, a business analyst who lives in Watertown, said she began boycotting Starbucks last year following labor disputes at stores near her home and workplace. She now purchases cold brew concentrate from another company through a subscription that costs $20 and delivers every two weeks.

"I won't go back to Starbucks until the workers have a contract," said Osborn.

Lia Kahan, a public health worker who lives in Allston, has also shifted toward independent coffee shops. She said her purchasing decisions reflect a preference for supporting local businesses rather than large corporations.

"We vote with our money," said Kahan.

Kahan described her decision as an effort to direct spending back into the local economy and support businesses she believes treat workers more responsibly.

"I subconsciously judge people when I see them with a cup of Starbucks. It's meaningful to invest back in Boston, instead of corporations that don't care about their people," said Kahan.

The closures have also affected downtown commercial real estate. At a historic corner building in Government Center, known for the copper kettle hanging above its entrance, Starbucks removed its green branding last fall but continues to hold the lease and pay rent, according to Ben Ravelson, a partner at Atlantic Retail and one of the property's listing agents.

Ravelson said the landlord had faced limited urgency to secure a replacement tenant while Starbucks remained responsible for the space. He confirmed that discussions with a prospective tenant were underway but had not resulted in a signed agreement.

"We do have a deal that's in process, but it's not signed yet," said Ravelson.

Ravelson declined to disclose when Starbucks' lease expires or identify the prospective tenant.