Carleton University student Léa Plisson says she was surprised to see nine Starbucks locations closing in Ottawa, but she had already moved on from the iconic — and now struggling — coffee chain.
“I was kind of shocked,” said Plisson. “I wasn’t expecting it because I mean, it’s Starbucks.”
In September, the Seattle-based coffee giant announced the closures as part of a plan to “optimize the store portfolio” in response to slowing revenue growth in North America.
Plisson said she used to frequent the chain more often when she was younger, but now?
“It’s definitely not my first choice,” said Plisson.
She prefers smaller, local coffee shops.
“They care a lot more about their customers, and you can tell by the way they serve you, and by the quality of their products,” said Plisson, adding that she finds local cafés’ offerings more “artisan.”
Plisson said she also doesn’t mind paying more if the service and ingredients are better.
“Even if Starbucks reopens and stabilizes, I’ll keep exploring new cafés,” she said. “It’s fun to explore and not just be stuck going to one café.”
Anika Wu, a Carleton University communication and media studies student from China, says she has found that local cafés have a better vibe than big chains.
“When I go to a local café, I feel more welcome,” said Wu. “They have more hospitality.”
Wu said Starbucks employees often seem to be “just doing their job,” while local café staff show more passion for their craft.
“They’re more into the choice of coffee beans and how they make their coffee,” she said. “If you go to a local café, you can find something interesting. They have more decoration than Starbucks.”
One local café owner says he has mixed feelings about the Starbucks closures.
“I’m not celebrating it,” said Brian Montgomery, who owns two Oat Couture Oatmeal Café locations, Gladstone Avenue and on Bank Street. He opened his first café in Old Ottawa South in 2018, just a block from a Starbucks that is now closed.
“I never like to see [these] stories close in my neighbourhood — it’s less foot traffic. But on the flip side, it does kind of remove a competitor.”
Montgomery says the Starbucks’ closures may encourage customers to “rediscover that local café,” emphasizing that community focus sets smaller shops apart.
“We focus on really great customer service, personal connection,” he said. “We do a great product and we’re in the community.”
But Montgomery says he admires Starbucks for what they accomplished.
“I’ve always been a fan of Starbucks and the way they built their business,” he said. “When I opened my store, I wasn’t afraid of being a block away. They are what they are.”
Montgomery described Oat Couture as “the only oatmeal café in the world,” offering 15 different oatmeal bowls, along with sandwiches and bakery items. “We’ve done things with oatmeal that nobody’s ever done,” he said. “It’s my creative side.”
The café’s name, he explained, is inspired by the French term “haute couture,” meaning “high fashion.”
“The H is silent,” Montgomery said. “It sounds like haute couture — oat couture.”
He said as Ottawa grows, his café continues to reach new audiences, especially students. “We’ve catered a lot more to students than maybe other cafés have,” he said, adding plans to reintroduce a student discount soon.
In Little Italy, Café Raphael, a European-style coffee shop that opened earlier this summer, has attracted loyal customers.
Raphael Vakin, the owner and operator of the café, said he hadn’t heard about the Starbucks closures and isn’t concerned with competing against big brands.
Vakin says he spent years experimenting with blends and techniques before opening his café. He customizes every drink to each customer. From adjusting the temperature to adding more matcha powder, he does this free of charge.
“When the customer takes the cup, it has to be perfect,” said Vakin.
The café doesn’t have a set menu.
“I tell the customer, don’t give me the name of what you want, tell me what you like and I’ll do it for you,” said Vakin, adding that these conversations help customers learn their own preferences while building personal connections.
Vakin believes three aspects define a coffee shop from an owner’s perspective: customer service, product quality and décor.
Café Raphael is open five days a week. Vakin, who opened the café as a retirement project rather than a profit machine, works behind the counter while his wife and a barista assist with service.
“He cares a lot about his customers,” said David Lemieux, who handles social networking for Café Raphael. “He’s very passionate about what he’s doing.”
“He’s enjoying it to the roof,” Lemieux added.
Lemieux said Vakin’s goal is to make Café Raphael a “destination location,” not just a walk-in stop.
According to Starbucks’ latest financial filings, global comparable-store sales fell two per cent in the third quarter of fiscal 2025, the third straight quarterly decline. North American sales dropped two to six per cent over the past year, driven largely by fewer customer visits despite slightly higher average spending per transaction. Because of the slide, the company conducted a review of struggling locations.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance,” CEO Brian Niccol said in a statement announcing the closures.
A survey from Starbucks Workers United found that nine in 10 baristas reported chronic under-staffing, leading to long waits and frustration for employees and customers.
Business analysts say these issues have added to the chain’s broader struggles. A Forbes analysis suggests Starbucks has “lost its way,” struggling to maintain the “community” experience that founder Howard Schultz built, while inflation and prices have driven some customers away.
Starbucks’ Q4 Fiscal Year 2025 results continue to reflect these challenges: global comparable-store sales rose just one per cent, with North American sales flat as fewer customer visits offset higher average spending. The company has shuttered 627 stores as part of its restructuring plan, with more than 90 per cent of closures in North America.
Niccol also announced reductions to 900 non-retail partner roles and the closure of many open positions in North America. Despite these changes, Starbucks expects to finish the fiscal year with 18,300 stores across the continent.
