According to Business Insider, Starbucks will close up to 400 store locations in the U.S. and Canadian, which accounts for 4% of their total stores.
The coronavirus pandemic forced Starbucks to temporarily close locations globally.
With an estimated revenue plunge, their CEO, Kevin Johnson says that the coffee giant will pivot towards digital.
TechCrunch reports that Starbucks plans to reopen smaller locations with more focus on curbside pickup, walk-up counters, and drive-thrus.
Most of the new stores will be in suburban markets. Starbucks also plans to experiment with "more urban-based pickup locations."
Pre-Covid, takeout already made up 80% of the brand's sales, which reports say likely encouraged them to accelerate their shift towards launching smaller format stores.