CHICAGO – Caribou Coffee has decided to close 80 units and convert 88 more into Peet’s Coffee & Tea, the Chicago Tribune reports. Caribou recently inked a $340 million agreement with Joh. A. Benckiser, a German investment company that purchased Peet’s in 2012.

“Over the past few months, we at Caribou have revisited our business strategy, including closely evaluating our performance by market to make decisions that best position us for long-term growth,” said Mike Tattersfield, president of Caribou. “While the decisions we've made have been difficult for our team in Minneapolis, as well as our team members across the country and our guests and fans everywhere, we are working to make this transition as seamless as possible for the Caribou community.”

By late 2012, Caribou Coffee locations numbered 610, with nearly all those units in the Great Plains and Midwest area. By 2015, that number will drop to 486. After closing/converting stores, Caribou outlets will be in Denver, Iowa, Kansas, Minnesota, North Carolina, North Dakota, South Dakota and Wisconsin, as well as 10 markets internationally.

Meanwhile, Peet’s currently has 200 cafes, with a number of those in retail stores, such as Target and Jewel. Some analysts wonder if the conversion to the more upscale Peet’s will turn away Caribou customers used to Caribou’s more laid-back style and prices.