New York — Starbucks said Thursday that it plans to expand in the United States with hundreds of new stores and more seating capacity at existing locations, emphasizing its cafes as destinations for customers even as drive-thru coffee remains a growing focus for the industry.
The company unveiled the plans during a presentation in New York for investors. After announcing in September that it would close hundreds of less profitable stores, Starbucks said it now expects to open up to 175 new U.S. coffee shops this year and around 400 in 2028.
Starbucks’ development plans include smaller-format stores that the company said cost about 20% less to build while still offering seating, drive-thru service, and mobile order pickup. Chairman and CEO Brian Niccol said Starbucks ultimately sees an opportunity to build at least 5,000 new cafes across the U.S. and told investors there are thousands of sites where no Starbucks operates within a mile of a competitor.
In its remarks, Starbucks contrasted its approach with drive-thru-only coffee chains such as Dutch Bros and 7 Brew, saying the National Coffee Association found that 59% of coffee drinkers who bought coffee outside their home in the past week used a drive-thru—an all-time high—when the trade group surveyed the industry in September. Niccol said Starbucks has seen a different pattern in its own customer behavior over the last month, with more than 60% of its customers coming into a store to order.
Niccol said Starbucks’ cafes are central to the company’s differentiation. “Our cafes are our point of differentiation,” he said. He added that the company wants those spaces to feel vibrant and inviting, rather than designed primarily for quick service.
Starbucks said it also plans to add 25,000 additional seats to its U.S. cafes by the end of fiscal year 2026 this fall, as part of an ongoing upgrade process intended to make existing stores warmer and more welcoming. The company said the retrofits cost around $150,000 each and are performed overnight while stores are closed; Starbucks said the improvements have been completed at 200 locations and are expected to reach 1,000 by fall, with the company expecting to finish the work in 2028. Starbucks said Niccol observed customers spending longer time in stores that have been revamped.
As part of its changes to improve service, Starbucks said it is installing equipment meant to speed up ordering and delivery of drinks. The company said a next-generation espresso machine will cut in half the 70 seconds it now takes to pull espresso shots and will double capacity to eight shots at a time, with the machines scheduled to begin rolling out to U.S. stores in 2027. The company also said it is adding staff and equipment to improve service times and give employees more time to connect with customers, as it continues an effort that Niccol began in 2024 to revive slowing sales.
Starbucks said it will focus next year on improving its afternoon business, which it described as weaker than its morning performance. It said that in spring it plans to introduce customizable energy drinks made with a proprietary green coffee extract, and it is planning more snackable foods high in protein and fiber, including flatbreads, cottage cheese and protein popcorn.
The company also laid out changes to its loyalty program. Starbucks said it will roll out a three-tiered program starting March 10 in the U.S. and Canada for Green, Gold and Reserve members, and that it has 35.5 million active loyalty members in the U.S. Starbucks said Green members will still earn one star per dollar spent and can redeem stars for food and beverages, but will earn a $2 credit faster than before and get free drink modifications once per month.
Starbucks said higher spending members will earn more perks, with Reserve status members required to earn 2,500 stars in 12 months. The company said Reserve members gain access to exclusive merchandise and events, including all-expense paid trips to coffee-focused destinations such as Milan and Costa Rica.
Starbucks also reiterated its outlook after earlier reporting stronger-than-expected sales in its fiscal first quarter. The company said same-store sales were up 4% globally and in the U.S. in the October-December period, which it described as its best U.S. performance in two years, and it said it expects global and U.S. same-store sales to rise 3% in its 2026 fiscal year.
For its 2028 fiscal year guidance, Starbucks said it expects to continue to expect U.S. and global same-store sales to rise 3% or more and said it expects revenue to grow by 5%. The company forecast earnings per share of $3.35 to $4 for fiscal 2026, compared with adjusted EPS of $2.13 in its 2025 fiscal year. Starbucks shares fell 1% in midday trading Thursday.