Starbucks on Wednesday announced closures of 400 traditional cafes in North America, adding that the closures would be due to renovations or moving locations for expansion purposes and providing more pick-up options.
The closures make way for new changes in the way Starbucks provides its services in the U.S. and Canada. The company on Wednesday also detailed its financial impact from the COVID-19 pandemic and updated its annual quarterly outlook, according to its SEC filings.
Shares for the company fell four percent in midday trading Wednesday, and the company shared that it expects revenues to decline as much as $3.2 billion in its current third-quarter due to the pandemic.
The company said in its SEC filings that it intends to “restructure our company-operated business in Canada over the next two years, with the potential of up to 200 additional stores being closed,” adding that the pandemic has caused “unprecedented circumstances” for the overall business.
For every store that closes, Starbucks says at least one alternative location would open.
Alternative locations will include smaller lobbies and a more express service, intended for customers who pay ahead of time and are looking to for coffee that is easy to grab-and-go, according to a company press release.
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Starbucks to close 400 stores in North America, expand pick-up options https://t.co/eVLRtWb21z pic.twitter.com/Xy9bGn9stH
— The Hill (@thehill) June 10, 2020
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