Peet’s Coffee, the Berkeley pioneer that ignited America’s specialty coffee movement and influenced Starbucks, is pulling back from San Francisco’s vibrant neighborhoods after decades as a fixture.
The chain, which once ran more than 465 outlets across the U.S., China, and the Middle East, faces a sharp reduction tied to industry pressures and corporate upheaval. By January’s end in 2026, 30 Bay Area stores will shutter, erasing three longstanding San Francisco spots from the city’s café landscape.
The Pressure Mounts
High coffee bean prices and a post-pandemic surge in home brewing have eroded margins for coffee chains nationwide. Starbucks closed hundreds of locations and cut 900 jobs in 2025 amid a $1 billion overhaul. Peet’s, down 1.2 percent in stores from 2023, entered this squeeze with a U.S. count that plummeted from nearly 400 in 2019 to 255 by late 2024.
These trends forced operators to prune underperformers, cutting debt and overhead in a bid for efficiency.
A Legacy Under Pressure
Alfred Peet founded the brand in 1966 in Berkeley, frustrated by weak American brews. He imported dark roasts and precise grinding, mentoring future rivals like Starbucks founders. For decades, Peet’s cafés dotted San Francisco from the Marina to the Castro, drawing locals for hours-long stays over espresso and pastries.
These spots became informal gathering points, embedding the brand in neighborhood life. Now, that presence frays amid broader contraction.
The Acquisition Enters the Picture
Keurig Dr Pepper launched an $18 billion all-cash bid for JDE Peet’s, Peet’s Amsterdam-based parent, on January 15, 2026. The offer of 31.85 euros per share gained board and major shareholder support, with closure eyed for the second quarter.
Post-deal, Keurig plans to split into two public firms: one for North American drinks like sodas, the other a “Global Coffee Co.” rivaling Nestlé. Peet’s closures align with this portfolio reshaping, prioritizing profitability over tradition.
Thirty Shops Close This Month
The wave hits hard locally: San Francisco loses its 32-year-old Polk Gulch flagship at 2139 Polk Street, the Cole Valley anchor at 919 Cole Street, and the Castro hub at 2257 Market Street. Peet’s confirmed the moves on January 20, linking them to “long-term growth priorities and current market conditions.”
Across the Bay Area’s 20-plus locations, these cuts signal a targeted retreat from high-rent, high-operation sites. The Polk flagship drew purists for its meticulous pulls; the others served as vital “third places” beyond home and work.
Workers Face Uncertain Futures
Estimates peg 45 to 75 job losses from the three San Francisco sites alone, stripping stable roles prized for quality focus. Peet’s spokesperson Stephanie O’Brien stated, “We are deeply grateful to our incredible employees and loyal customers for their continued commitment to the brand.”
Baristas and managers now navigate abrupt change, as leadership eyes cost synergies under Keurig’s efficiency drive.
San Francisco’s Shrinking Coffee Map
Competitors like Starbucks, once Peet’s protégé, loom large, while independents and chains such as Nestlé-owned Blue Bottle scout vacated spaces. Prime real estate in Polk Gulch and the Castro could shift to higher-margin retail or housing.
Bay Area advocates and supervisors urge job preservation and relocation aid, but lack leverage against deal momentum. Globally, JDE Peet’s operations in Europe, Asia, and the Middle East face similar scrutiny post-takeover.
The closures mark more than spots on a map. They reflect coffee’s commoditization, squeezed between home setups and conglomerates like Nestlé and the emerging Keurig coffee giant. For San Francisco, losing Peet’s flagships underscores a pivot from lingering café culture to quick, tech-fueled service—leaving locals to wonder what refills the void and preserves the city’s coffee soul.
Sources:
SF Gate “Peet’s Coffee Close Multiple SF Locations Amid $18B Takeover”
SF Chronicle “Peet’s Coffee Is Closing Numerous Shops Across the Bay Area”
SFist “Berkeley-Born Peet’s Coffee Closing 30 Bay Area Locations”
Reuters “Keurig Dr Pepper Launches $18 Billion Takeover Bid for JDE Peet’s”
Yahoo Finance “Popular Coffee-Chain to Close 30 Locations Next Week Amid $18B Acquisition”
TheStreet “Starbucks Rival Coffee Chain Peet’s Coffee Closes Dozens Locations Permanently”