Will your local Starbucks close?

Will your local Starbucks close? – Starbucks will close up to 400 locations owned by the company for the next 18 months while also accelerating the expansion of “convenience-led formats” such as roadside pickups, drive-thru, and special mobile pickup locations.

The coffee giant based in Seattle said the movement was driven by changing the behavior of consumers who had shifted because of the Covid-19 pandemic. In mid-March, the company closed the location and moved to the “to go” model in other stores.

“When we navigated through the Covid-19 crisis, we accelerated our shop transformation plan to overcome the reality of the current situation, while still providing a safe, close and comfortable experience for our customers,” Starbucks CEO Kevin Johnson said in a release of Wednesday.

While the company will close up to 400 locations, still plans to open around 300 new stores in the current fiscal year, down from its original destination 600.

The company says “Transformation of the U.S. Shop Portfolio” Including the expansion of the “new Starbucks Pickup Shop in a solid market including New York City, Chicago, Seattle and San Francisco, and an increase led by Curbside, Drive-Thru and Wind up Windows in the suburbs.”

Pickup Curbside has grown in retailers and restaurants during Pandemi and now Starbucks said customers will soon be able to “use the roadside pickup” from their cars.

Orders will be placed using the order feature and paying in the Starbucks application and then consumers will check-in in the parking lot designated when they arrive at the store.

Before Pandemi hit, more than 80% of Starbucks orders in the US were placed while traveling by using a lot of orders and paying the future features on cellular applications. There are almost 20 million members of Starbucks Rewards, the company said.

“The roadside pickup is an accelerated experience due to the Covid crisis and the increase in customer needs for comfort on the opportunity when traveling,” Starbucks said in a statement. “Over the next few months, Starbucks will increase the number of stores that offer roadside pickups and pilots a number of certain locations to exclusively offer this format.”

Starbucks took income related to viruses that could potentially exceed $ 3 billion in the third quarter he said in submitting Wednesday regulations. Virus outbreaks also cut operating income between $ 2 billion and $ 2.2 billion when the virus went berserk.

Starbucks provides an initial estimate for the losses adjusted to the third quarter of around 55 cents to 70 cents per share. Analysts surveyed by factset predict loss of 16 cents per share.

Stocks fell more than 4.5% in trading Wednesday morning.

In a letter sent to employees at the end of last month, President U.S. Starbucks Rossann Williams said that the leave employees will be able to maintain their allowance and can also apply for unemployment assistance. About 95% of the shops managed by the U.S. Operating at various levels of service, although most operate with reduced hours.