Starbucks Planning To Close 400 Stores

By Bill Galluccio

June 11, 2020

Starbucks Announces Permanent Closure Of Hundreds Of Its Stores

Starbucks announced that 400 stores in the United States and Canada will be closing down over the next 18 months. The coffee chain plans to focus on drive-thru and curbside pickup as consumer behavior changed during the coronavirus pandemic.

"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.

While 400 stores will be closing, Starbucks is planning to open 300 new stores that will focus on handling to-go orders, which already account for 80% of sales. The company is also working to roll out curbside pickup options, where a customer would place their order using the Starbucks app, and then have it delivered to their car when they arrive.

"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."

Starbucks was hit hard by the coronavirus pandemic, with same-store sales dropping by 43% in May compared to the same month in 2019. They have reopened about 95% of stores, but many are operating at a reduced capacity with fewer staff members.

Photo: Getty Images

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