Starbucks Says Many of Its Stores Will Reopen in June
Starbucks is working on a new plan to reopen closed cafés across the United States.
According to reports and a letter from the coffee chain's CEO, most workers will return to cafés in May, and the chain expects to reopen most closed locations in June.
The chain also shared details on which Starbucks locations will open first.
Unlike other restaurants who transitioned to pick-up only services during the COVID-19 pandemic, Starbucks made the decision to shutter some of its cafés in highly-trafficked cities and locations, where social distancing was made a priority. Most Starbucks locations pivoted to drive-thru services and also offered home delivery, but customers who were left with no local operating Starbucks locations may be happy to hear that the coffee giant is already working on plans to reopen all of its closed locations.
In mid-April, Starbucks CEO Kevin Johnson announced that the chain is preparing to reopen cafés and will ask all employees to return to work in early May as other locations reconfigure their store format. According to a Business Insider report, Johnson believes nearly all Starbucks locations will be open and operating in June. In a letter to employees, Johnson said they'll focus on finding new ways to serve customers while promoting social distancing as they reopen stores this summer.
"With governments, health care professionals, businesses and citizens all working together, there is evidence many markets have in fact 'flattened the curve' and are now beginning to see a decline in the number of new confirmed COVID-19 cases," Johnson wrote. "This is prompting many to define the next steps that will appropriately prioritize health concerns while, at the same time, take thoughtful and measured steps to serve our communities."
Since early social distancing measures began in mid-March, Starbucks initially closed all stores that didn't have drive-thru services, and allowed other cafés to transition into delivery-only businesses. The coffee chain also paid all employees, whether or not they picked up shifts, and offered everyone who did work an extra $3 per hour, according to Starbucks' communications blog. But that'll change in May, as workers are currently expected to return to cafés to work, and only high-risk employees who qualify for Starbucks' "Catastrophe Pay" program can continue to stay home, Business Insider reports.
Will all Starbucks cafés reopen at once?
Johnson said Starbucks will use its China locations to provide insight into how the chain will reopen coffee stores in the United States. He explained that stores in areas that weren't harshly affected by outbreaks in China opened first, whereas other stores in the nation's COVID-19 epicenter, the Hubei province, stayed closed longer.
It seems likely that some cafés will continue to only provide takeout and delivery solutions into the summer, especially in metropolitan areas like New York City, Detroit, New Orleans, and Boston, where COVID-19 has had more impact. Johnson said Starbucks regional leaders will use guidance from local health officials on when they can fully reopen. "Only by trying to exceed local, state and national health requirements will we be ready to serve our communities," Johnson wrote in his letter to employees.
However, there could be a chance that your local Starbucks may shutter indefinitely due to financial constraints — especially if it's owned by the corporate chain and not a franchisee. CNBC reports that Starbucks' same-store sales slumped by 3% in the United States in its second quarter, and during the last week of March, the same category was impacted by 70%. Shares of the coffee chain have also fallen 17% in 2020.
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