Starbucks, like other chain restaurants and coffee shops, faced a loss of customers when the pandemic hit, as many people began staying home and no longer needed the coffee shop for a morning caffeine fix.
And now it looks like the chain is closing a good number of its stores–400 locations to be exact.
Keep reading for the details!
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According to MSN, "The coffee chain announced in its June 10 SEC filing that it would close up to 400 company-owned stores in the next 18 months in the US, and up to 200 in Canada."
The article explains, "Even with dining rooms reopening in some parts of the country, it's still nearly impossible for casual-dining restaurants to generate a profit at reduced dine-in capacity. As a result, many chains have permanently closed some stores, and some brands have decided to throw in the towel altogether."
Despite these closures, Starbucks is still planning on opening 300 new stores by the end of 2020.
In a press release, the chain explained that they would be focusing on "convenience-led formats such as Drive-Thru, mobile order only Starbucks Pickup and curbside pickup to meet changing customers behaviors."
These changes are designed to adjust Starbuck's business model to meet consumers' needs during Covid-19.
Starbucks CEO Kevin Johnson explained the decision in an open letter: "We believe this transformation of our store portfolio, blending Starbucks Pickup stores with traditional Starbucks stores in dense metropolitan markets, will elevate the customer experience and position Starbucks for long-term growth."
Starbucks is not the only company attempting to transition right now. According to MSN, Pizza Hut, Dunkin' Donuts, McDonald's, and TGI Fridays are also closing stores in response to the pandemic.
