Starbucks Has Plans To Close Up To 200 Stores Across Canada (VIDEO)
There could be a whole lot less coffee in Canada. In an announcement on Wednesday, the company confirmed that Starbucks has plans to close up to 200 locations across Canada over the next two years. While the coffee giant still intends to open new stores the Americas, many old cafes will be closing up shop for good.
In a regulatory filing on June 10, it was revealed that Starbucks intends to close hundreds of Canadian stores in the coming months, as part of an overall restructuring process post-pandemic.
Up to 200 Canadian-based cafes could be shut down over the next 24 months, even after the economy begins to return to normal.
Although some new caffeine spots are still expected to open in Canada this year, many older ones will be closed permanently.
"This repositioning will include the closure of up to 400 company-operated stores over the next 18 months," Starbucks explained.
"We will restructure our company-operated business in Canada over the next two years, with the potential of up to 200 additional stores being closed," the notice read.
Instead of closing completely, some could instead be transformed into pick-up only locations. This is a move many cafes could be considering, as Starbucks reports 80% of its sales were to people who made pick-up-only purchases, even prior to COVID-19.
“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,” CEO Kevin Johnson said in a notice on June 10.
The U.S.-based company estimates that it has taken a hit of approximately US$2.2 billion since the beginning of the COVID-19 pandemic.
While Canadian cafes were closed for a short period due to COVID-19 restrictions, almost all of them have now reopened.
The company most recently announced their new summer drinks menu, as well as a new app that helps customers order on the go.
The coffee company initially intended to open around 600 new stores across the Americas this year; however, this has now been halved to 300.
According to Starbucks, there are currently over 1,400 stores across Canada.