Black Rifle Coffee is to close 12 company-owned shops in the United States as the veteran-founded chain cuts costs and shifts towards a more franchise-led business model.
The closures form part of a multi-year restructuring programme called Project Core, which the company said was designed to improve profitability, simplify its operations and reduce the amount of capital tied up in its retail estate.
Black Rifle Coffee closures planned by early 2027
The company has not published a full list of the locations affected. However, a representative confirmed that the Live Oak shop in San Antonio, Texas, will close in 2027, with operations expected to end by the close of the first quarter.
Black Rifle Coffee also modified the leases on eight locations it no longer plans to develop, according to its latest filing with the US Securities and Exchange Commission.
Chief financial officer Matt Amigh said the changes would support franchise growth while creating a more efficient cost base.
“These actions mark a significant step toward a more asset-light operating model, which we expect will support franchise-led retail growth, lower capital requirements, and create a more efficient cost structure,” he said.
The company had 39 retail locations at the end of September: 17 company-owned shops and 22 franchises. The closure plan will therefore remove a substantial proportion of its directly operated estate, while leaving its franchise network unaffected.
Retail revenue from the company’s Outpost shops fell by 8% year on year in the third quarter, to $5.4 million. By contrast, wholesale revenue rose by 8.1% and direct-to-consumer sales increased by 8.5%.
Overall quarterly revenue climbed 7.3% to $108 million. But Black Rifle Coffee’s net loss widened to $8.7 million, compared with $1.2 million during the same period a year earlier.
Project Core incurred about $12 million in costs during the quarter, largely related to impairment charges and lease changes. The company said it expected the programme to deliver annualised savings of more than $12.7 million once fully implemented.
San Antonio roots
The planned closures will be closely watched in Texas, where Black Rifle Coffee has strong ties. Its first physical shop opened in San Antonio, which remains home to a corporate office, and the company formed a partnership with the Dallas Cowboys in 2022.
Black Rifle Coffee said it expected the restructuring and a greater reliance on franchised shops to reduce capital requirements while allowing the brand to continue expanding through wholesale sales, online business and selected retail locations.
