Starbucks is planning on closing hundreds of stores across North America in response to revenue losses brought on by COVID-19.

In a letter to stakeholders, Starbucks President and CEO Kevin Johnson announced that up to 200 stores will close or be repositioned in Canada over the next two years.

This is in addition to the closure of 400 Starbucks stores in the United States over the next 18 months.

According to the statement, Starbucks expects their third quarter revenue to decline by about $3 billion, and their operating income to decline by about $2 billion as a result of COVID-19.

In Canada, Starbucks resumed the majority of their operations by the end of May, after most cafés were shut down entirely and services were reduced to drive-thru, delivery and takeout at others.

The stores that provided reduced services have allowed Starbucks to test and refine a new model of operation that they will implement at all stores moving forward.

Mandatory safety measures at Starbucks branches for employees include masks or face coverings, temperature checks ahead of each shift, extra cleaning protocols, and plexiglass shields at the register.