Starbucks Plots 5,000 New U.S. Stores Amid Rising Competition
Starbucks is mapping out its biggest U.S. expansion in years, targeting as many as 5,000 new stores across the South, Midwest, and parts of the Northeast—areas where its footprint remains comparatively light. The plans, revealed during the company's January 29, 2026, analyst and investor day and reported by the Wall Street Journal, reflect what CEO Brian Niccol described as "crystal clear" untapped demand for Starbucks coffee.
According to a recording provided by S&P Global Market Intelligence, Niccol told investors that more than 1,000 of the potential new sites are in markets where Starbucks doesn't have a store within a mile, despite established competition from rivals such as Dutch Bros., 7 Brew, and Scooter's. "The ability for us to say that there's coffee demand out there that exceeds where we are today is crystal clear," Niccol said.
The expansion plan comes as Starbucks works to regain the growth momentum that defined its earlier decades. Niccol, who took the helm last year, is betting that new builds and redesigned interiors will reinvigorate performance and draw more customers back into cafés—where more than 60% of transactions still happen in-store rather than through mobile or drive-thru orders.
Challenges remain. Starbucks currently opens about 400 new U.S. locations a year, meaning it must speed up construction and hiring to hit its long-term target. Niccol said expanding the company's talent pipeline will be critical, highlighting a new role, the "coffee house coach," designed to accelerate store development by grooming future managers.
The chain is also investing heavily in remodeling existing stores to boost efficiency and comfort. By last November, 70 upgrades had been completed, with another 1,000 planned for fiscal 2026. Each renovation typically lasts a night or two, allowing stores to remain open throughout.
Starbucks projects earnings per share to climb from the current $2.15–$2.40 range in fiscal 2026 to as much as $4.00 by fiscal 2028, supported by a larger store base, operational savings, and stronger sales.
Still, analysts say Starbucks faces a tougher playing field than in its past growth cycles. "The new CEO of Starbucks is clearly trying to demonstrate he can drive growth and refocus the business, but he's walking into a very different competitive landscape than Starbucks enjoyed even five years ago," Adam Siegel, vice president of product growth at Crexi, told GlobeSt.com.
Siegel noted that the company's recent store closures may have rattled some landlords, potentially complicating future site selection and lease negotiations. "The broader question is about consumer behavior and economic conditions," he added. "The coffee and tea segment has been growing, but economic uncertainty and price sensitivity are real factors. There's always a threshold where discretionary spending gets reassessed—and how the market responds to this intended expansion will be telling."
Source: GlobeSt/ALM