After Closing 600 Locations, America’s Largest Coffee Chain Is Expanding Again — Eat This Not That

By Ghuman


Starbucks, America’s largest coffee chain, is expanding again after closing 600 locations due to the pandemic. Despite the closures, the company is still looking to open new stores in the US and abroad. This article from Eat This Not That will explore the reasons behind Starbucks’ expansion and what it means for the future of the coffee giant. We’ll also look at the new products and services that Starbucks is offering to customers. So, if you’re a fan of Starbucks, read on to find out what the company has in store for you!

After Closing 600 Locations, America’s Largest Coffee Chain Is Expanding Again

It’s been a tumultuous year for America’s largest coffee chain, but despite closing 600 locations, they’re now expanding again. Starbucks announced that they’re opening up to 400 new locations in the United States this year, with plans to open up to 1,000 new locations in the next five years.

The new locations will be focused on drive-thru and delivery options, as well as adding more locations in suburban and rural areas. Starbucks is also planning to open up to 300 new locations in China this year, as well as expanding their delivery options in the country.

The coffee chain has been struggling since the pandemic began, with sales dropping by as much as 30% in some areas. However, the company is now seeing a rebound in sales, with the company’s CEO, Kevin Johnson, saying that the company is “well-positioned to capitalize on the recovery.”

Starbucks is also planning to invest in new technology, such as mobile ordering and contactless payment options, to make the customer experience more convenient. The company is also planning to expand its food and beverage offerings, with plans to add more plant-based options and new breakfast sandwiches.

It’s clear that Starbucks is looking to the future, and is hoping to capitalize on the rebound in sales. With the addition of new locations and technology, Starbucks is hoping to make the customer experience more convenient and enjoyable.

After closing numerous locations during the pandemic, and seeing recent sales miss estimates, Starbucks is beginning to reclaim its rightful spot as America’s reigning coffee chain.

According to Restaurant Business, the chain said last week that it will be adding hundreds of new locations across the United States in the new fiscal year that started just weeks ago.

RELATED: Starbucks May Be Hiding the Real Reason Behind Store Closures In New York

The estimated 500 new Starbucks cafés that will soon be added signal a new wave of growth for the chain that shuttered some 600 locations during the pandemic. The new stores won’t restore the chain’s previous net footprint, but the company hopes the move will compensate for the closures in terms of sales. The majority of the closed outlets were in urban locations or malls, whereas the new units will largely be established in locations where takeaway and drive-thru service can be the primary drivers of sales.

Drive-thru and mobile orders now account for an astonishing 70% of Starbucks’ sales, while before the COVID-19 pandemic, the chain’s takeaway model brought in about 55% of its sales. “We made the strategic decision to transform the store portfolio in the United States,” said the company’s CEO, Kevin Johnson.

Aside from the recent closings and the new stores coming in America, Starbucks has also been expanding rapidly abroad. In fact, 75% of its planned expansion in the near future will occur outside of America, with major growth planned in Asia and particularly in China, where the chain enjoys a high level of popularity.

According to The Motley Fool, the company is hoping to add an impressive 1,500 locations in overseas markets in the current fiscal year.  This comes after Starbucks grew its number of international locations by 8% last year even as it contracted domestically.

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