Starbucks to close 400 stores as focus shifts to on-the-go service

Starbucks announced Wednesday that it will close 400 company-owned stores in the next 18 months and shift its focus toward more on-the-go options for customers.

Typically, Starbucks closes 100 stores in the Americas a year, according to a filing with the U.S. Securities and Exchange Commission.

The company has not released a list of stores it plans to close in the next year and a half as part of its new strategy.

Despite the closures, Starbucks still plans to open 300 stores this fiscal year, down from a planned 600, the SEC filing said.

The coffee giant also said it will expand “convenience-led formats” over the next 18 months in an effort to serve changing customer preferences amid the coronavirus pandemic.

“Starbucks stores have always been known as the ‘third place,’ a welcoming place outside of our home and work where we connect over a cup of coffee,” CEO Kevin Johnson said in a news release.

“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,” he said.

Starbucks said it will increase curbside pick-up and drive-thru options at company-operated stores.

The company also plans to roll out new Starbucks Pickup Locations in larger markets, including New York City, Chicago, Seattle and San Francisco, according to the announcement Wednesday. These mobile-order-only locations work hand in hand with the company’s app through which customers can order and pay ahead.

Additionally, layouts at some stores will be renovated to include a separate counter for pick-up to better accommodate delivery people and customers who place mobile orders, the company said.

“Starbucks will blend the traditional sit and stay cafe with new on-the-go experiences and reposition its network of stores to best serve its customers,” according to the announcement. the release said.

This story was originally published June 10, 2020 at 11:15 AM with the headline "Starbucks to close 400 stores as focus shifts to on-the-go service."