Starbucks account to close up to 200 coffees in Canada in response to the pandemic COVID-19, and the evolution of consumption habits.
10 June 2020 20: 01
Updated at 23h18
Starbucks will close up to 200 coffee shops in Canada
The Canadian Press
TORONTO — Starbucks intends to close up to 200 coffees in Canada in response to the pandemic COVID-19, and the evolution of consumption habits.
The chain based in Seattle has announced its intention to restructure its business activities in Canada within the framework of a two-year plan.
The details were included in a letter to shareholders filed Wednesday with the Securities and Exchange Commission (SEC) in the United States.
“While the recovery of our business continues, we take now the basis of a phase most important – “to restore and strengthen the resiliency” – that will allow us to accelerate the transformation of our business”, explained the company’s shareholders.
Starbucks has explained that it is to close down usually a few hundred of cafes operated by the company each year in North America, primarily due to the expiration of the leases. The new wave of closures would exceed this figure only in Canada.
Some of the cafés canadians that are to be closed would be “repositioned,” said the company, which suggests that they might be moving into a new area, or change the format. The formats considered include counters not accepting orders for take-out, services, driving, and delivery services.
The company has already experimented with locations that do not offer coffee to take away. The first coffee in canada using this new format has been launched in Toronto in January. Located in the financial district of the metropolis, and its area was 93 square metres or 1,000 square feet.
These cafes are aimed mostly at consumers who spend their order before you arrive, through a mobile application.
“These (pilots) have provided us with information on how to integrate optimally the new format with the cafés nearby,” said Starbucks.
“While we had initially planned to run this strategy over a period of three to five years, the rapid evolution of customer preferences, accelerating the need for this concept and we are now considering the accelerated development of Starbucks coffee and pick Up (…) including the renovation and repositioning of many of the cafes existing to expand our portfolio of establishments with a mix of appropriate formats.”
Starbucks has indicated that it wants to open new cafés in other parts of the world, including China, but that it would slow down its structural growth in North America.
The company plans to add 300 new cafes this year, less than the 600 originally planned, but this will be accompanied by the closure of up to 400 establishments operated by the company over the next 18 months.