Starbucks Will Close Up To 200 Coffee Shops In Canada By 2022

Bad news for coffee lovers.

Starbucks Corp. (NASDAQ:SBUX) said it could close as many as 200 stores across Canada over the next two years. In a regulatory filing, the Seattle-based retail coffee store chain stated:

“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 re-positioned.”

Starbucks said it 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 each year in the U.S., mostly due to lease expirations, trade-area shifts and other normal market conditions.

While the company has reopened most of its stores that were temporarily shut down due to the coronavirus pandemic, Starbucks forecast its third-quarter revenue will plunge by as much as $3.2 billion U.S. due to the pandemic-induced closures.

The company said in its regulatory filing that about 88% of its stores in Canada are currently open.