Starbucks (SBUX) is doubling down on its efforts to adopt more stores to an “on-the-go” format as it adapts to the economic realities of life after coronavirus lockdowns.
On Tuesday, Starbucks forecast that COVID-19 related lockdowns would cost it more than $2 billion in the current quarter, and “adverse impacts” from the crisis will erode comparable quarterly sales by 40-45%. However, CEO Kevin Johnson told employees in a letter that “the most difficult period is now behind us,” and the company is in the midst of “ clear evidence of business recovery” as sales rebound.
The coffee giant shuttered many of its U.S. company-operated stores during the pandemic, and saw comparable sales drop. During the next 18 months, Starbucks plans to transform its stores by adding drive-thru and curbside pick-up options, as well as rolling out more Starbucks Pick-up stores — accelerating its initial transformation timeline of three to five