Peet's Coffee to Shutter Dozens of Stores Nationwide, Citing Economic Headwinds
Peet's Coffee, the Berkeley-born chain credited with pioneering America's specialty coffee movement, is scaling back its national footprint. The company confirmed plans to close 27 of its 283 U.S. locations, a move that includes shutting down its shops in Manhattan Beach and Redondo Beach in Southern California in the coming days.
The closures come just over a year after Peet's was acquired by beverage giant Keurig Dr Pepper in an $18 billion deal. In a statement, a Peet's spokesperson attributed the decision to "current market conditions," echoing the pressures felt across the restaurant and retail sector amid inflationary pressures and shifting consumer habits.
Industry analysts point to a confluence of factors squeezing mid-tier chains like Peet's. While giants such as Starbucks possess the scale to weather commodity volatility, smaller players are more vulnerable. The price of arabica coffee beans soared over 40% last year, driven largely by climate-related disruptions to harvests in key producing regions like Brazil and Vietnam. This has compressed margins for brands that prioritize premium, ethically sourced beans.
"This isn't just about a few underperforming stores," said retail analyst Marcus Chen of the firm MarketWatch Insights. "It's a strategic recalibration. Post-acquisition, Keurig Dr Pepper is likely optimizing the portfolio. We're seeing a broader correction in the premium coffee space, where growth is now driven by drive-thrus and suburban markets more than urban cafes."
The union representing workers at several Peet's locations announced the number of closures in a social media post, expressing concern over the impact on employees.
What Our Readers Are Saying
David R., Longtime Customer in Berkeley: "It's a sad day. Peet's is an institution. This feels like the corporate playbook—acquire a beloved brand, then start cutting 'redundancies.' The soul of the place is in those neighborhood cafes."
Priya Sharma, Small Business Owner in Seattle: "The economics are brutal for everyone right now. Rent, wages, supplies—it's all up. I sympathize with any business making these tough calls, but I hope they're supporting the displaced workers."
"CaffeinatedCritic" (Online Commenter): "Good. Overpriced and pretentious. Maybe now they'll focus on making a consistent drink instead of coasting on 1960s nostalgia. The market is oversaturated with these 'artisan' chains."
Maria Gonzalez, Former Barista in Chicago: "As someone who worked for a major chain during a round of closures, my heart goes out to the staff. It's not just a job loss; it's losing a community hub. The human cost never appears on the balance sheet."
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