Due to the coronavirus and changes in consumer habits, Starbucks is closing up to 200 coffee shops across Canada within a two-year period.
According to a shareholders letter filed yesterday with the US Securities and Exchange Commission:
“As our business recovery continues, we are now laying the foundation for a more transformational phase — ‘restore and build resilience’ — enabling us to accelerate the transformation of our business.”
That said, Starbucks claims that in any given year, it closes about 100 shops in North America, mostly because of leases expiring. But, this time, things are a bit different.
Some of these shops will be “repositioned.” For instance, some may turn into pick-up, drive-thru and curbside delivery. One example is found in Toronto’s financial district, which opened in January of this year.
Starbucks said it still plans to open more new coffee shops elsewhere in the world, including China, but it was reducing structural growth in North America.
This year, 300 new shops will be added, which is 50% of their initial planned new locations. But, with that, in the next year and a half, 400 shops will close.