Above photo: Getty Images.
The chain cites underperformance and restructuring.
While activists attribute six quarters of financial losses to boycotts over the Gaza genocide.
Starbucks announced on 25 September that it will permanently close 900 stores across the US and Canada, saying the decision was linked to “underperforming” outlets and a $1-billion restructuring plan, while dismissing any connection to the global boycotts that have heavily targeted the brand during Israel’s ongoing genocide in Gaza.
The company framed the move as an attempt to revive business after six straight quarters of falling US sales.
Chief Executive Brian Niccol said certain cafes could not deliver the “physical environment our customers and partners expect,” adding that the closures are part of a $1-billion restructuring drive to cut underperforming outlets, reduce management layers, and speed up service.
He described the plan as an effort to restore the chain’s “coffeehouse” feel and move away from the sterile, corporate setting that had replaced it over time.
The official line does not mention the boycott campaigns that have plagued the brand for many years, particularly after the start of Israel’s genocide in the strip.
Starbucks stresses that it does not operate in Israel and denies providing financial support to the Israeli government or military, yet has been among the most prominent targets of global boycotts over Gaza.
In 2024, its West Asia franchise partner AlShaya cut more than 2,000 jobs, explicitly citing “challenging trading conditions” from boycott pressure. In the US, Starbucks lost over $11 billion in market value in late 2023 after boycott calls escalated during Israel’s onslaught in Gaza.
Activist outlets such as ILKHA and platforms like Boycat point to the latest wave of North American store closures as proof of boycott effectiveness, contrasting with the company’s refusal to publicly acknowledge it.
Starbucks is not alone in facing heavy consumer backlash and financial losses from boycott campaigns.
McDonald’s was forced to buy back all 225 of its Israeli outlets in April 2024 after its franchisee provided free meals to the Israeli army, with the company later admitting Israel’s genocide in Gaza had “meaningfully impacted” sales.
In June 2024, Intel abandoned plans for a multi-billion-dollar chip factory in Israel after months of boycott pressure and warnings from campaigners about financial risks tied to Tel Aviv’s genocide in the devastated strip.
Coca-Cola was added to the BDS National Committee’s priority list in December 2024, and in March 2025, the Palestine Solidarity Campaign designated Coca-Cola and its brands as strategic boycott targets.
Zara has also been singled out, with the BDS movement endorsing a global campaign against the Inditex-owned brand.
Among many others, these campaigns have produced visible financial fallout, particularly in Muslim-majority regions, forcing corporations to restructure operations or reconsider positions.
