Starbucks to Close 400 Stores in North America

You might have to make your coffee at home before heading out to work. The Seattle-based coffee giant announced that it will be closing 400 Starbucks locations in North America in the next 18 months, 200 of them being in Canada. However, you may only be without coffee for a short time. According to Starbucks CEO Kevin Johnson, the coffee chain is looking to open 300 "to-go" stores based on changing customer behaviors due to the coronavirus pandemic.

Starbucks Closing 400 Stores in North America

"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 new Starbucks pickup stores will utilize the Starbucks app, letting customers place mobile orders and use a variety of pickup options including curbside pickup and carryout. The company launched its first curbside pickup location in New York back in November, letting customers place orders and check-in at designated parking spots or walk up to the counter and grab their drinks. According to CNN Business, 80% of store sales are are "on-the-go" purchases.

"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."

The company hopes to see a mix of traditional Starbucks coffee shops and new Starbucks pickup locations in large cities. The takeout aspect of the new stores will promote social distancing as well as speed up lines for customers who want to grab and go.

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