Starbucks To Shut 400 Outlets In the US And Canada, Will Set Up Plant In China
Neither the big brands nor small ones are immune to the economic crisis caused by the coronavirus pandemic. Starbucks, the renowned coffee chain, has announced that it will close 400 outlets in the US and Canada and open smaller takeaway outlets. Most of the takeaway outlets will be opened in smaller cities.
People will be able to buy their food and drinks from here. Starbucks is anticipating losses in the next quarter, so the company is closing its stores. Starbucks has more than 30,000 outlets in 77 countries of the world. Of these, 15,000 outlets are in the US.
Although Starbucks is closing its cafes in the US-Canada but increasing its investment in China. On March 12, Starbucks announced that the company would set up roasting plants of high-quality coffee beans in China that would be ready in 2022.
The company will spend $130 million to build this plant, which will be the largest plant outside the US land. Starbucks also aims to increase the number of outlets in China to 6,000 by 2022.
The lockdown has not completely worn off in the world, but China is again emerging as the preferred investment country. Experts believed that due to COVID-19, investors would leave China but it does not appear to be happening any time soon.