Social distancing due to COVID has taken a bite out of popular gathering places like Starbucks. Starbucks Corp. could close hundreds of stores across Canada over the next two years, the company said in a regulatory filing on 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 in its filing.
Starbucks also plans to close 400 stores over the next 18 months in the United States.
The coffee chain operator said it typically closes about 100 stores per year in the Americas mostly due to lease expirations, trade-area shifts, and other market conditions.
While the company has reopened most of its stores that were temporarily shut due to the COVID-19 pandemic, Starbucks forecast its third-quarter revenue will plunge by as much as US$3.2 billion due to the pandemic-induced closures.