Starbucks is planning to reduce its locations in Canada as they try to navigate through the coronavirus disease 2019 (COVID-19) crisis.
In its memo to the U.S Securities and Exchange Commission, the Seattle-based chain notified its stakeholders that they are planning to close up to 200 Starbucks shops in Canada, explaining that they will “restructure” their company-operated business in the Great White North over the next two years.
The company currently operates 1,400 outlets in Canada so if 200 of them will be closed, it would result in a nearly 15% reduction in its Canadian operations.
Starbucks, however, clarified that not all these shops will be closed completely, as some of it will be “repositioned” into store formats such as pick-up, drive-thru, and curbside delivery.
The restructuring of Starbucks’ shops in Canada is in addition to the “U.S. store repositioning,” which includes “the closure of up to 400 company-operated stores over the next 18 months in conjunction with the opening, over time, of a greater number of new, repositioned stores in different locations and with innovative store formats.”
“This strategy aligns closely with rapidly evolving customer preferences that have accelerated as a result of COVID-19, including higher levels of mobile ordering, more contactless pick-up experiences and reduced in-store congestion, all of which naturally allow for greater physical distancing,” the company said.
It added that they are intensifying their efforts to respond to the increasing demand for convenience of their consumers.
Starbucks said it has opened two Starbucks pick-up locations in the past seven months — one is located at Penn Plaza in Manhattan while the other is in Toronto’s Commerce Court.
The company’s pick-up store in Toronto opened last February, offering the same food and beverages like the ones provided in a regular Starbucks shop.
The coffee giant said they are planning to open another Starbucks pick-up location near Grand Central Station in Manhattan soon.