Starbucks Unveils Smaller-Format Store, Plans 400 New U.S. Shops by 2028

Starbucks plans to build 400 net-new coffeehouses across the U.S. by 2028, the company said at its 2026 Investor Day on Tuesday, leaning on a smaller-footprint design first prototyped in New York City in 2025 and in San Antonio last month.

The chain, which operates more than 29,000 retail stores globally, framed the compact format as one it can adapt to "smaller locations and different sizes and shapes" while keeping each cafe "inviting for customers." It is the clearest design shift of Starbucks' "Back to Starbucks" turnaround under CEO Brian Niccol, who joined the company in 2024.

What does the smaller format actually look like?

The redesigned cafes feature a shortened service counter. A more compact glass case for displaying bakery and food items sits directly in front of customers at the point of sale.

Seating layouts vary with the footprint. A converted former mobile-only shop might seat only a handful of guests. A larger location can hold plush seating and tables with room for multiple customers to work on laptops at once.

Renderings Starbucks released show dark green walls, wood accents, plants, and side tables with knickknacks. Front awnings shade outdoor patio seating.

Where does this fit in the turnaround?

Starbucks introduced mobile-only locations in 2019 and shut them down last year as part of its "Back to Starbucks" pivot. The broader campaign has brought back handwritten notes on coffee cups, rolled out bigger lounge chairs, and revived an employee dress code.

Existing stores are also being "uplifted" with more seats and softer furnishings. Each renovation costs about $150,000. The chain told investors the uplift program will add more than 25,000 cafe seats by the end of fiscal 2026.

That seat count points to how much of the chain's near-term growth depends on getting existing guests to linger longer, rather than on placing new bets in untried markets.

"Great execution creates better experiences, which drives repeat visits and fuels growth," COO Mike Grams said in a statement.

How big is the store math?

Last month Starbucks said it would close about 250 stores in North America. Yet Grams told investors the company expects to build 400 net-new coffeehouses across the U.S. in 2028 — some of them small.

The arithmetic points to a deliberate shift. Starbucks is shrinking the average box while expanding the unit count. Smaller formats cost less to build and open, fit tight urban corridors and second-floor locations, and let the chain test demand in markets where full-size cafes would be hard to justify.

They also give Starbucks faster optionality. The chain can react to neighborhood-level demand shifts without committing to a long lease on a large footprint.

What's the investor read?

For Niccol, the smaller-store playbook is a quieter test than high-profile menu changes. Investors will read the 2028 store-opening pace and the per-store sales of the new format as signals of whether "Back to Starbucks" is becoming a durable operating model — or another round of costly redesigns that the chain will need to walk back.