Financing

Godiva is closing its U.S. cafes

The chocolatier, citing shifting sales to digital, will either close or sell all 128 of its North American stores just three years after entering the market.
Godiva Chocolatier
Photo courtesy of Godiva Chocolatier

Godiva is closing its U.S. cafes as part of a massive closure of its North American retail outlets, the company said late last week.

The company will either close or sell all 128 locations by the end of March, including all of the company’s U.S. locations. The closure will include seven locations that featured a full café menu less than two years after the first location was opened.

“Our brick-and-mortar locations in North America have had a clear purpose since we first opened our doors in this market, to provide an in-person experience for consumers to enjoy the world’s most exquisite chocolates,” CEO Nurtac Afridi said in a statement. “We have always been focused on what consumers need and how they want to experience our brand, which is why we have made this decision.”

The company did not say how many employees will be affected by the decision. Godiva is keeping its retail operations open in Europe, the Middle East and China.

Still, it’s a major shift for the company, which opened its first café concept in New York in 2019, seeking to replicate a model that worked in several other countries. The cafes feature sweet and savory menu items, such as the Croiffle, a croissant pressed in a hot waffle iron.

The company had big plans for the concept, with 10 additional locations planned for 2019 and up to 2,000 locations around the world and more than 400 for the Americas.

But Godiva itself has been undergoing major changes recently. Afridi was named CEO in December, for instance, and quickly opted to go away from the company’s brick-and-mortar strategy. The company has focused on selling its chocolates online.

Godiva also noted that consumers’ shopping patterns shifted away from in-person visits during the pandemic.

“Of course, this decision was difficult because of the care we have for our dedicated and hard-working chocolatiers who will be impacted,” Afridi said.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

With CosMc's, McDonald's shows its risk-taking side

The Bottom Line: The first unit of McDonald’s opened to long lines in its first two days. The concept proves that the company can get attention. And it’s willing to take some chances.

Financing

Big restaurant chains get aggressive on unit growth

The Bottom Line: Yum Brands, McDonald’s and Domino’s are all making a big push to accelerate growth. Most of it will come outside the U.S. But they have domestic plans, too.

Financing

Chris Kempczinski changes his tune on restaurant automation

The Bottom Line: While noting that humans will continue to drive restaurants, the McDonald’s CEO notes that the calculus on automation gets closer as labor costs soar.

Trending

More from our partners