On Thursday, Sept. 25, Starbucks CEO Brian Niccol announced the abrupt closure of its two Seattle Reserves: the Capitol Hill Roastery and the SoDo Reserve Store. This is part of a $1 billion restructuring plan that has already shuttered stores across North America and will displace around 900 workers when layoff notifications are sent out.
Niccol explained that Starbucks would close locations where “[They’re] unable to create the physical environment customers and partners expect, or where they don’t see a path to financial performance.” This statement left many puzzled, as the Reserve stores were consistently busy and highly regarded by both locals and visitors.
The Capitol Hill Roastery, described as Seattle’s “Flagship Reserve,” was a bucket-list location. Former CEO Howard Schultz compared it to “if Willy Wonka had built the ultimate coffee shop instead of a chocolate factory,” a description that felt apt.
Upon entering, visitors could see coffee beans transported through clear tubes, massive roasting machines in action and baristas working with precision reminiscent of Wonka’s Oompa Loompas. Unlike a small walk-in shop or drive-through, the space encouraged people to linger, explore, converse and admire the craftsmanship.
Its expansive menu— featuring items like berry parfaits, focaccia pizzas, avocado toasts and cheesecakes— combined with copper-and-wood accents, ceiling-high coffee machines, and even a cocktail bar, created a refined and communal experience that drew both locals and tourists.
Despite its acclaim, the Roastery was among several Reserve locations being closed as Starbucks reevaluates the Reserve concept. These stores are expensive to operate, with high overhead, complex equipment, specialty staff, and premium offerings.
Rising costs, changing consumer habits and underperformance in certain high-cost locations made them unsustainable under the company’s current financial strategy.
Starbucks emphasizes that unionization or employee representation were not factors in the decision. In fact, a company representative told The Seattle Times that Reserve Roasteries will remain open in Chicago, Milan, New York City, Shanghai and Tokyo, signaling that the concept is still a core part of the company’s strategy.
The closing of one of Seattle’s most iconic storefronts raises questions about Starbucks’ strategy, the impact on employees, and what this means for the city’s coffee identity. The decision reflects the shifting economics of “experience retail,”— the customer journey, encompassing every interaction from product discovery to purchase to fulfillment to post-purchase support— highlighting how even celebrated, immersive spaces can be vulnerable to corporate restructuring.
