Starbucks to Close 200 Canadian Locations


SEATTLE — Starbucks plans to close up to 200 locations in Canada over the next two years as part of the company’s “portfolio-optimization” efforts.

In a filing to U.S. securities regulators, the company stated “As part of the ongoing assessment of our physical-store footprint, we typically close approximately 100 company-operated stores annually in the Americas, primarily due to lease expirations, trade-area shifts and other market conditions. In addition to the U.S. store repositioning described above, 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.”

Starbucks also announced it will accelerate expansion of convenience-led formats, such as drive-thru, Starbucks Pickup and curbside pickup, in the U.S. over the next 18 months to meet changing customer behaviours and shifts caused by COVID-19.

“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,” says Kevin Johnson, CEO, Starbucks. “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.” 

The U.S. portfolio transformation includes the expansion of new Starbucks Pickup stores in dense markets — including New York City, Chicago, Seattle and San Francisco — and convenience-led enhancements such as curbside, drive-thru and walk up windows in suburban areas. With customers’ increased use of the Starbucks App to order ahead and the national availability of Starbucks Delivers through Uber Eats, Starbucks will also renovate select store layouts, including the addition of a separate counter for mobile orders at high-volume stores, to make it easier for customers and delivery couriers to pick up their order.

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