Peet’s Coffee, a beloved chain with roots in Berkeley since 1966, is making headlines with a wave of store closures across California.
Following an $18 billion all-cash takeover by Keurig Dr Pepper, Peet’s Coffee will permanently close dozens of locations by the end of January 2026, while announcing a new partnership to serve its coffee at Omni Hotels & Resorts worldwide starting February 1.
According to the Daily Mail, Peet’s, founded in Berkeley and headquartered in Emeryville, operates 283 locations nationwide and over 465 globally, including in China and the Middle East. The chain, owned by a Dutch parent company, JDE Peet’s, has been a staple in California’s upscale neighborhoods for decades.
The closures will hit hard in the Bay Area, where Peet’s has 35 locations. Nearly 30 of these are slated to shut down, according to local reports.
Specific San Francisco locations posting “for sale” signs include 2139 C Polk St. in Polk Gulch and 2257 Market Street in the Castro. Additionally, the Cole Valley spot at 919 Cole Street is confirmed to close. A Peet’s spokesperson described the decision as “difficult” and tied it to aligning with long-term growth priorities. The exact locations closing remain undisclosed beyond those reported.
Employees and customers alike are reeling from the news. Dino Solis, an employee at the Berkeley location, shared the emotional toll on staff.
“It's been a really emotional time period,” Solis told ABC 7 News. “When we were asking about transfers, it seemed that multiple stores being closed meant it wouldn't be equitable to move so many workers.”
Customers are equally shaken, with many highlighting the community built around these cafés. Loyal patron Rebecca Forster spoke to the Daily Mail about the unique bond at her local Peet’s.
Forster described an “instant tsunami of welcome” from baristas who knew her order within days. “I don't know what it will do to the neighborhood, but I know what it will do to the regulars...They are beyond sad,” she added.
Online, the backlash is growing with petitions and social media outcry. A Change.org petition in Evanston urges Peet’s to keep a café open, arguing it’s a vital part of the community fabric.
The issue has sparked debate over corporate consolidation in the coffee industry. Critics argue these closures prioritize profit over neighborhood culture, especially at a time when coffee bean prices are soaring due to droughts in Brazil and Vietnam, compounded by market volatility from import tariffs.
Keurig Dr Pepper’s acquisition of JDE Peet’s, announced in August and financed with $7 billion from private equity, marks one of Europe’s largest recent buyouts. The deal is set to further consolidate the global coffee market.
Post-acquisition, the Amsterdam-based parent company plans to split its coffee and beverage operations, including Dr Pepper, into two separate publicly traded entities. Meanwhile, Peet’s hotel partnership with Omni Hotels & Resorts hints at a pivot to new revenue streams.
For investors and consumers skeptical of corporate overreach, this saga raises red flags about market concentration and local impact. If you’re tracking the coffee sector, consider diversifying into smaller, independent roasters or commodity ETFs tied to agriculture—big mergers often signal volatility ahead.