Starbucks confirmed it will be closing up to 400 of its company-owned stores across North America over the next 18 months as it expects to lose more than $3 billion in revenue in its fiscal third quarter due to the new coronavirus.
The Seattle-based coffee giant said it will be expanding its other “convenience-led” formats like curbside pickups, drive-thru service, and mobile pickup locations in the meantime.
“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,” Kevin Johnson, CEO of Starbucks, said in a news release on Wednesday.
in a regulatory filing Wednesday that the virus outbreak will also slash its operating income between $2 billion and $2.2. billion for the quarter, which ends June 28. Starbucks plans to report its third-quarter results on July 28.
Starbucks was forced to close its stores to customers at the height of the pandemic but continued to operate drive-thru and pickup in many locations. The Seattle company said 95 percent of its 8,000 US company-run stores are now open with varying levels of service, just slightly lower than operations globally.
(With The Associated Press)