This Coffee Chain Is Behind One Of The Biggest Closures Of 2026 So Far

The restaurant business is notoriously cutthroat, but famous chains tend to have more staying power. Of course, even the most popular chains aren't immune to the ups and downs of sales, changing demands of customers, and fierce new competitors. Unfortunately, 2026 has brought some surprising and unexpected chain closures — including some from the beloved coffee chain, Peet's Coffee.

Founded in 1966 in Berkley, California, Peet's went from a local coffee house to an international chain with over 400 locations. However, the chain has experienced a drop in sales at various locations, prompting the company to shutter upwards of two dozen locations in the San Francisco area. Ito the chagrin of many loyal customers, another location in Evanston, Illinois, also shuttered. Customers went so far as to create a petition to extend the closure date to give customers enough time to prove their loyalty and get sales up.

However, customer complaints couldn't keep Peet's from closing due to declining sales. The closures coincide with the chain's coming under new ownership, bought out by Keurig Dr Pepper, which decided to shift its business alignment. Apparently low sales at coffee bar locations didn't align with a long-term growth strategy, which is why states like California and Illinois are seeing less of Peet's Coffee bar locations. Still, the store-bought Peet's coffee brand is very much alive and well, selling in both pod and coffee bean form at many major grocery chains.

While locations have already closed, Peet's hasn't announced how many more closures, if any, will occur. That still leaves around 200 California locations and eight Illinois locations, not to mention countless others in numerous states and internationally. So, Peet's fans can still get their favorite coffee drinks at Peet's coffee bars for some time to come. The brand continues to launch seasonal menus like the 2025 fall menu that we reviewed and this past winter menu, which included Táche Pistachio Milk and protein smoothies.

The chain still provides fan favorites like the unique Coconut Black Tie iced coffee that ranked as our favorite Peet's ice coffee drink. If you're looking for a hot coffee drink, you can check out our ranking of Peet's hot coffee drinks to see how they measure up. Of course, you can always buy a bag of coffee beans that feature some of the chain's most famous roasts, from a dark roast like Major Dickason's to the medium roast Breakfast Blend.

Peet's Coffee isn't the only chain that's initiating mass closures. Starbucks shuttered a whopping 400 locations in 2025 alone. The rising cost of ingredients, higher labor costs, and more expensive menu items at fast food chains are causing these operations to take some of the biggest hits. Tragically, coffee joints aren't immune.