Starbucks is closing 400 stores over the next 18 months, the company announced Wednesday.
USA Today reports the Seattle-based coffee empire plans to shutter up to 400 company-owned locations over the next 18 months, but expand “convenience-led formats” such as curbside pickup, Drive-Thru and mobile-only pickup locations. Starbucks said the changes are due to an emphasis on “to go” business since the coronavirus pandemic forced restaurants, bars and coffee shops to close indoor service in March.
“As we navigate through the COVID-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while still providing a safe, familiar and convenient experience for our customers,” Starbucks CEO Kevin Johnson said in a press release Wednesday.
The company did not provide a list of locations for stores closing. The chain has 24,000 locations worldwide, including more than a dozen in Central New York.
Starbucks says it still plans to open up to 300 new stores in its current fiscal year, down from its original target of 600 locations.
According to USA Today, the company launched its first curbside-only pickup location in New York in November, allowing customers to place orders on the Starbucks app and check in at designated parking spots outside stores.
“Curbside pickup is an experience accelerated due to the COVID crisis as well as customers’ increasing need for convenience in on-the-go occasions,” Starbucks said in a statement. “Over the coming months, Starbucks will increase the number of stores that offer Curbside pickup as well as pilot a select number of locations to exclusively offer this format.”
CNBC reports Starbucks lost up to $3.2 billion in revenue due to Covid-19 this past quarter, but expects expects weekly cash flow to be positive by the end of June as more places reopen.
Shares fell more than 4.5% in stock market trading Wednesday, according to USA Today.