Ubiquitous coffee chain Starbucks
Starbucks announced on Wednesday that it would begin downsizing its considerable presence in the United States. The company plans to close 400 stores through 2021, as well as reducing the number of new stores that were previously set to open, halving the count from 600 to 300. The move is in response to the change in consumer behavior prompted by the coronavirus pandemic. Amid the pandemic, consumers placed great emphasis on takeout, delivery, and curbside pickup, a trend that is continuing even as the pandemic slowly begins to wind down worldwide. Many of the stores set to close are "café" locations, a format that is not as popular as it had been pre-pandemic.
While closing stores should help the company dampen the economic impact of the pandemic, Starbucks plans to address the change in consumer preferences by piloting new stores that are exclusively for to-go orders. Additionally, Starbucks plans to capitalize on the growing trend of "curbside pickup." Much like the curbside pickup and car delivery offered by food chains such as Pizza Hut (parent company Yum! Brands, inc.
The concept of a pickup only Starbucks is nothing new; Starbucks locations such as those found in airports and some shopping malls and university campuses only offer pickup orders. The company had also been experimenting with the concept of opening more pickup-centric stores instead of full cafes, with one such pilot store opening in New York City before the pandemic. The change in consumer priorities forced Starbucks to consider the idea on a larger scale sooner than anticipated. However, it seems as if the company will have little issue in making the transition.
"Our vision is that each large city in the U.S. will ultimately have a mix of traditional Starbucks cafés and Starbucks Pickup locations. With Starbucks Pickup stores located within walking distance of a traditional Starbucks café, customers can choose to enjoy their Starbucks Experience in a Starbucks café or pick up their order at either that café or a nearby Starbucks Pickup store." Said Starbucks in a statement.
- https://www.msn.com/en-us/money/companies/starbucks-plans-to-close-up-to-400-stores-as-the-coffee-giant-attempts-to-prepare-for-a-post-pandemic-america/ar-BB15joil
- https://www.usatoday.com/story/money/food/2020/06/10/coronavirus-starbucks-closing-stores-expanding-mobile-only-options/5332786002/
- https://techcrunch.com/2020/06/10/starbucks-to-close-400-stores-speed-expansion-of-pickup-locations-curbside-and-more/