Peet's Coffee Trims Store Footprint in California Amid Corporate Restructuring
Peet's Coffee, the Northern California pioneer that helped shape America's specialty coffee culture, is scaling back its physical presence in its home state. The company confirmed this week the closure of multiple locations, a move it describes as a strategic adjustment to market realities and long-term growth plans.
In a statement to the Los Angeles Times, a Peet's spokesperson characterized the decision as "difficult but necessary," part of "a broader effort to align our business with long-term strategic priorities and evolving market conditions."
Among the first to shutter are stores in Redondo Beach and Manhattan Beach, which employees say will close their doors this Friday. While the company has not released an official count, reports from unionized workers in Berkeley and store managers speaking to the San Francisco Chronicle indicate that at least 27 of Peet's 283 U.S. locations are slated for closure, with nearly 30 in the Bay Area alone.
The restructuring follows the $18 billion all-cash acquisition of Peet's parent company, JDE Peet's, by beverage giant Keurig Dr Pepper earlier this year. Industry analysts suggest the closures likely represent post-merger optimization, a common step to streamline overlapping operations and reduce costs.
The announcement has sparked concern among employees. A union spokesperson estimated roughly 400 workers could be impacted. At several Bay Area stores, union members expressed surprise at the sudden move and are now advocating for enhanced severance packages and priority transfers to remaining Peet's locations that are hiring.
Founded in Berkeley in 1966 by Alfred Peet, a Dutch immigrant with coffee roasting in his blood, Peet's is often credited with planting the seeds for America's coffee revolution. Its original Berkeley store famously inspired the founders of Starbucks. The current downsizing marks a significant moment for the legacy brand as it navigates a consolidated corporate landscape.
Reaction & Analysis:
"This feels like a betrayal of the community roots Peet's was built on," said Maya Chen, a longtime customer at the closing Redondo Beach location. "It's not just a coffee shop; it's a morning ritual for so many of us. These corporate mergers always end up hurting the local spots."
"From a business standpoint, this is a predictable consolidation phase," noted David Riggs, a retail analyst based in San Francisco. "Keurig Dr Pepper is looking for synergies. While painful in the short term, pruning underperforming stores could strengthen the brand's overall health and allow for reinvestment in higher-potential markets or digital channels."
"They're talking about 'strategic priorities' while hundreds of people are about to lose their jobs with what sounds like minimal warning," fired back Carlos Mendez, a barista and union organizer at a Berkeley store. "This isn't 'alignment,' it's corporate greed. The parent company made an $18 billion deal, and now the frontline workers who actually make the coffee are paying the price. Where's the loyalty to the people who built this brand's reputation day after day?"
"It's a sad day for coffee history," added Eleanor Shaw, a Berkeley historian who has written about Alfred Peet. "That first shop on Vine Street was a temple. It taught California, and then the country, what coffee could be. I hope this restructuring doesn't dilute that original, artisan spirit."
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