Peet's Coffee Announces Major Store Closures Following $18 Billion Acquisition
The iconic coffee chain Peet's Coffee, long associated with California's most affluent neighbourhoods, has confirmed it will permanently close dozens of locations across the West Coast. This significant restructuring follows the $18 billion all-cash takeover of its parent company, JDE Peet's, by beverage giant Keurig Dr Pepper, which was finalised in August.
Widespread Closures Across California
According to reports from the San Francisco Chronicle, nearly 30 of the 35 Peet's Coffee outlets in the Bay Area are slated for closure by the end of January 2026. The chain, which operates 283 locations nationwide, has refused to disclose a complete list of affected stores, but several specific sites have been identified.
In San Francisco, longstanding locations at 2139 C Polk Street in Polk Gulch and 2257 Market Street in the Castro district are reportedly among those being put up for sale. Additionally, the Cole Valley café at 919 Cole Street will also shutter, as independently confirmed by local publication Hoodline.
A 'Difficult Decision' for the Company
A spokesperson for Peet's described the closures as a 'difficult decision' made to align the business with long-term growth priorities and current market conditions. In an official statement, the company expressed gratitude to employees and loyal customers while reaffirming its commitment to quality and heritage.
'We are deeply grateful to our incredible employees and loyal customers for their continued commitment to the brand,' the statement read. 'As we move forward, we remain dedicated to the quality, craftsmanship, and heritage that have defined Peet's for the past 60 years, while embracing new opportunities to innovate and grow.'
Employee and Customer Reactions
The announcement has sparked emotional responses from both staff and regular patrons. Dino Solis, an employee at the Berkeley location, described the notification period as 'a really emotional time', with colleagues crying and uncertain about their future options.
'For the first couple of days, some of us were either crying during the notification, or trying to figure out what our next moves are,' Solis told ABC 7 News. He added that transfer options appeared limited due to multiple simultaneous closures.
Loyal customer and author Rebecca Forster, who frequents a soon-to-close location, lamented the loss of community. 'I don't know what it will do to the neighborhood, but I know what it will do to the regulars...They are beyond sad,' she told the Daily Mail.
Forster described the unique atmosphere of her local Peet's, where baristas knew regulars' orders and spontaneous laughter filled the café. 'We know we are losing a place that is special not because it's convenient but because somehow the most lovely, bright and hardworking baristas ended up at one location,' she reflected.
Community Backlash and Petitions
Online backlash has grown rapidly, with petitions circulating to save neighbourhood cafés. In Evanston, a Change.org petition urges Peet's to 'Keep the Evanston café open through the end of the year and give this community a chance to show what it means to us.'
The petition argues that the store is neither struggling nor empty, but rather a vital piece of civic fabric. Similar sentiments have been expressed on social media, with regulars questioning the business rationale behind closing consistently busy locations.
Broader Business Context
The closures occur against a backdrop of significant corporate restructuring. Keurig Dr Pepper raised $7 billion from private equity firms in October to finance the acquisition, alleviating investor concerns about mounting debt.
This buyout represents one of Europe's largest recent acquisitions and further consolidates the global coffee market at a time of record bean prices, driven by droughts in Brazil and Vietnam and market volatility.
Meanwhile, Peet's parent company has revealed plans to separate its coffee and beverage operations into two publicly traded entities. Interestingly, Peet's itself has announced a new partnership with Omni Hotels & Resorts to serve its premium coffee worldwide from February 1st, prompting speculation about potential hotel ventures as a new business direction.
Founded in Berkeley in 1966 and now headquartered in Emeryville, Peet's operates over 465 locations globally, including in China and the Middle East. The current restructuring marks a significant moment for the brand that has been a staple in California communities for decades.
