In 1966, amid the political activism, student protests, and cultural ferment of Berkeley, at the corner of Vine and Walnut streets near the University of California campus, Alfred Peet opened a small coffee shop that would quietly revolutionize how Americans drank coffee. The beans were darker, the flavors bolder, and the experience slower and more deliberate than what many customers were used to at the time. That single storefront became a gathering place for curious minds and coffee enthusiasts alike, helping to spark the modern specialty coffee movement—and inspiring generations of roasters and café owners.
Night view of Peet’s Coffee in Tongzhou, Beijing – Photo by Shuaizhi Tian
Nearly six decades later, the company bearing Peet’s name is retrenching.
Peet’s Coffee will close approximately 27 of its 283 locations nationwide by the end of January 2026, with California among the hardest-hit states. The closures include stores in Los Angeles County, such as Manhattan Beach and Redondo Beach, as well as several Bay Area locations—including San Francisco’s Castro District, Polk Street, and Cole Street, and a store in Berkeley, the company’s birthplace.
In a statement, Peet’s acknowledged the impact of the decision while pointing to broader business pressures:
“Peet’s has made the difficult decision to close a number of Peet’s Coffee locations by the end of January 2026,” the company said. “These closures reflect a broader effort to align our business with long-term growth priorities and current market conditions. We are deeply grateful to our incredible employees and loyal customers for their continued commitment to the brand. As we move forward, we remain dedicated to the quality, craftsmanship, and heritage that have defined Peet’s for the past 60 years, while embracing new opportunities to innovate and grow.”
The closures follow Peet’s acquisition by beverage conglomerate Keurig Dr Pepper in a deal valued at approximately $18 billion. Industry analysts view the move as a strategic realignment as coffee retailers contend with rising operating costs, high commercial rents, and increasingly volatile global coffee prices.
The shutdowns will affect both unionized and non-unionized locations. Unionized workers in Berkeley confirmed their store is among those slated to close, with some employees reporting uncertainty about transfers and continued employment, particularly in areas where multiple nearby locations are shutting down.
Peet’s Coffee has long been a fixture of California’s coffee culture. While the company emphasized that the majority of its locations will remain open, the closures mark a notable shift for a brand deeply associated with the origins of American specialty coffee. From its humble beginnings as a single neighborhood café to a nationwide chain navigating consolidation and cost pressures, Peet’s current moment reflects broader challenges reshaping the coffee industry.
That said, Peet’s Coffee does not appear to be disappearing. The company maintains its online presence and may be increasingly focusing on e-commerce as part of its future strategy.
SW Newsmagazine has reached out to Peet’s to inquire whether the closures signal a broader move away from brick-and-mortar retail or an expanded focus on online sales, subscription services, or other direct-to-consumer channels. At the time of publication, no response had been received. The story will be updated if new information becomes available.
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