Starbucks to Shutter 400 Stores After Losing $2 Billion to Coronavirus Closures


Starbucks is looking towards closing up to 400 locations over the next 18 months and expanding on "convenience-led formats" like drive-thru and curbside pickup options for consumers.

Due to the COVID-19 pandemic, a change in consumer habits when it comes to getting their cup of joe has led the Seattle-based coffee giant to lean more towards convenience in pickup rather than in-store experiences, USA Today reports.

"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 news release.

While the company plans to close its doors on 400 locations, it hopes to open nearly 300 more in the next year. Soon, customers will be able to utilize a curbside pickup tool at many of these locations, opting to stay in their cars while their orders are brought to them.

Coronavirus has not only changed Starbucks' thinking when it comes to delivering people the coffee they crave. The pandemic has also caused the coffee mogul to take a $2 billion hit in revenue.

In a letter sent to employees, Starbucks U.S. President Rossann Williams said employees on leave are able to keep their benefits and apply for unemployment help.

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