Yahoo Finance Starbucks may close up to 200 stores in Canada by 2022
Starbucks may close up to 200 stores in Canada over the next two years as the company restructures its business.
The Seattle-based coffee chain disclosed the decision in a regulatory filing released Wednesday.
“We will restructure our company-operated business in Canada over the next two years, with the potential of up to 200 additional stores being closed, with some of those stores being repositioned,” the company said.
Starbucks said approximately 88 per cent of its stores are open in Canada. It currently has 1,148 company-operated stores across the country, a spokesperson said.
The potential closures come as Starbucks continues to transform its business to focus on its “on-the-go” format and mobile ordering. The company rolled out two Starbucks Pickup stores in the last seven months, including one in downtown Toronto and another in Manhattan, that cater exclusively to mobile and UberEats orders. Starbucks will accelerate the rollout of the stores, which was initially planned to occur over the next three to five years.
“Our vision is that each large city in the U.S. will ultimately have a mix of Starbucks cafes and Starbucks Pickup locations,” the company said.
Starbucks expects an operating income decline of between US$2 billion and $2.2 billion in its upcoming quarter as sales fell due to the COVID-19 pandemic.
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