Starbucks Will Close Up to 400 Stores in the Next 18 Months and Focus on To-Go Services
IHOP, Denny's and More Chains Permanently Close Dozens of Locations amid Pandemic
Social distancing measures have taken a toll on the company's revenue as many locations shifted to drive-thru only models in mid-March, while a majority of locations closed indefinitely. It is estimated that Starbucks has lost about $3.2 billion in revenue this fiscal quarter.
Starbucks is recovering, though, having reopened 95% of stores to date as regions across the U.S begin to open up. The company is keeping a positive outlook on recovering financially from this crisis.
"As our business recovery continues, we are now laying the foundation for a more transformational phase—'restore and build resilience'—enabling us to accelerate the transformation of our business in ways that elevate the customer and partner experience and drive long-term growth," CEO Kevin Johnson and CFO Pat Grismer wrote in a letter to stakeholders in the filing. “With each passing week, we are seeing clear evidence of business recovery, with sequential improvements in comparable-store sales performance."
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