April 22, 2024

Starbucks Shutdown: 400 Stores to Close


Starbucks Shutdown: 400 Stores to Close

It’s a to-go world these days. Coffee giant Starbucks announced that it will close nearly four hundred locations in the next eighteen months and invest in more convenient options for customers. These ideas include curbside pickup, drive-through, and mobile pickup-only locations, designed to cater to an increasingly takeaway-based model.

Given the behavioral shifts in consumers brought on by the pandemic, it’s no surprise to see the Seattle-based retailer make these changes. Earlier this year, Starbucks shut down some stores, while others were converted into pick up and drive-through only locations. Despite closing some four hundred stores, the company plans to open three hundred new ones by year’s end.

A drive-through Starbucks in Anaheim, California.

“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,” said Starbucks CEO Kevin Johnson in a statement.

Even before the pandemic, nearly four out of every five orders were placed through a mobile app, a number which is expected to grow during the coming years. Shifting to a convenience-based setup, both for coronavirus and efficiency concerns, is the next logical step for a company looking to streamline and simplify their operations. Time will tell if it’s the future of coffee.