Starbucks Corp. said on Wednesday that its chicken business will close by the end of this year and that the chicken business would be sold off as part of a restructuring that is expected to be completed in 2021.
Starbucks said it plans to close the restaurant in the San Francisco Bay Area in the second half of 2021.
The company said the closure of the restaurant would affect approximately 1,100 Starbucks employees and its U.S. franchisees.
The company has not released any details about the closure or the impact of the closing.
Starbuck will pay about $2.5 billion in cash to the owners of the chicken restaurant, including a $1 billion purchase price for the restaurants chicken.
Starbucks said it is considering paying other creditors such as investors and debt holders.
Starbursts chicken operation was the largest in the world and is the fourth-largest producer of chicken in the United States, after McDonalds and Tyson Foods.
It was the first restaurant chain in the country to make chicken available to consumers for $1, in a deal announced in January.
The U.K.-based chain said it had about 3,000 employees when it was formed in 1998, including about 800 in the Bay Area.
In 2016, it was valued at about $50 billion.
Starburst had annual revenue of $4.2 billion in 2016.