Starbucks Closing 300 Coffeehouses
Back again with some retail news and other notes that I have just learned and read about in business news and other stories that I have learned in retail. It's something that I have been looking for all day since I have some days off from work and it is probably pretty slow although I must say that some gas stations in the area that I am in, business in them are probably slower than others due to the fuel prices which I thought were going to drop after some news from a customer but they are pretty much the same.
With that said, lets move on from that and go on to some real business/retail news since I just got some notice that one retailer along with WestJet has been struggling and that is Starbucks which announced today that it is going to close about 300 coffeehouses due to business and the pandemic which I think has caused their first restaurants to close. Any luck if they are in business they will probably turn into a take out and drive in places and shut down dining areas where customers eat.
Which seems like the thing to do since McDonald's and other restaurants have done with their businesses due to this pandemic. Starbucks I thought would be able to thrive during this crisis but like most restaurants in Canada they have really fallen on hard times with walk in sales pausing and their online businesses suffering, Starbucks had better hoped that their drive-in and takeout businesses improve because these two parts I have mentioned isn't going to work for them in the long run.
Starbucks makes its money from walk ins and dine ins like regular restaurants and not so much in take outs and drive-ins even though that is a part of their business. I couldn't imagine being able to sustain that kind of growth by just relying on take out and drive in since they would really have to get a lot of orders from most customers in order for them to make a profit and to be able to help their franchisees pay their rents of the places they run their restaurants in and their employees.
With 300 restaurants closing in Canada, I can't imagine the number of Starbucks coffeehouses closing in the USA since that is where most of their sales are since they are an American company which was founded in Washington State. They already closed the restaurant near where I work and the one inside the bookstore and I am curious in finding out if they will close the one in the store where I work and the one in Sarcee. Well, it will not be surprising if they do since I suspect that their businesses have been hurt too.