Starbucks' Struggles in Montreal: A Tale of Coffee Conundrums
The coffee giant's woes are not confined to the bustling streets of North America. Montreal, a city renowned for its rich coffee culture, has become a battleground for the coffee chain's dwindling dominance. With a string of closures and a changing market landscape, the question arises: Is Starbucks hanging up its green apron in Montreal?
The numbers tell a story of decline. In September 2025, Starbucks shuttered over 200 locations across North America, and Quebec bore its share of the closures, with eight affected. While Montreal's count was relatively lower, the trend is undeniable. Over the last decade, at least 30 Starbucks locations in Greater Montreal have closed, a stark contrast to the openings. This raises concerns about the company's future in the city.
Robert Soroka, a professor at the John Molson School of Business, offers insight. He suggests that Montreal's coffee scene is a tough nut to crack for Starbucks. The city's coffee culture leans towards European flavors, with Italian-style and third-wave coffee shops like Olimpico, Café Myriade, and Café Milano gaining popularity. These specialty cafes offer a more discerning palate, and local coffee roasters provide a fresher taste and better quality.
In contrast, Starbucks finds itself in a competitive space. The fast-food coffee giants, Tim Hortons and McDonald's, offer cheaper alternatives, attracting a less discerning crowd. Soroka highlights the challenge Starbucks faces in a market where specialty cafes thrive, and local roasters cater to those seeking quality. The question remains: Can Starbucks compete with these local heroes?
The company's rationalization efforts are evident. Soroka points out that Starbucks wouldn't be closing stores if it didn't have a problem. Every organization, he argues, must assess underperforming stores and reduce traffic. Yet, Starbucks continues to face challenges in a saturated market. While the brand remains recognizable, its appeal might be waning.
The solution, according to Soroka, lies in looking outward. With North America's market saturation, Starbucks is expanding its horizons in Asia and Latin America. The company's 2025 annual report showcases growth in these regions, with Korea, Taiwan, Thailand, and the Philippines gaining hundreds of locations, and Latin America adding over 100. This strategic shift might be the key to Starbucks' survival, as Western influences in Asia grow.
In conclusion, Starbucks' struggles in Montreal reflect a broader trend. The company must adapt to changing consumer preferences and a competitive market. As it winds down in North America, the focus on international expansion becomes crucial. The question remains: Can Starbucks reinvent itself and reclaim its coffee throne in Montreal and beyond?
