Quote:
Originally Posted by whatnext
What, that renoavted location is nearly new!
I'm a little concerned that their strategy for Canada is not going to pan out the way they expect. I know a couple people like myself who were regulars who have cut way back as they closed convenient locations. I'm not going to wait in line for the privilege of picking up my coffee, in person or at a drive thru.
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They deemed the first wave of closures a success. Gauging from their internal results they decided to go forward and expand the total number from 200 to 300.
In these types of situations, some customers will be lost. But the priority is total profit not total revenue. They only need to transfer a certain percentage of customers from each closed location to the remaining ones to increase profit due to the lower costs of operating fewer locations.
As well, I imagine that many locations have been losing money since March and that hemorrhage is now stopped.