When Will Starbucks Reopen Closed Stores During COVID-19 Pandemic?

Posted on the 26 April 2020 by Thiruvenkatam Chinnagounder @tipsclear

Unlike other restaurants that switched to collection services only during the COVID-19 pandemic, Starbucks made the decision to close some of its cafes in crowded cities and places where social distancing had become a priority. Most Starbucks locations have pivoted to the drive-thru and have also offered home delivery, but customers who have been left without local operational Starbucks locations may be happy to learn that the coffee giant is already working on plans for reopening all its closed locations.

  • Starbucks is working on a new plan to reopen closed cafes across the United States.
  • Most workers will return to cafes in May, according to reports and a letter from the CEO of the coffee chain, and the chain plans to reopen most locations closed in June.
  • The chain also shared details of the Starbucks locations that will open first.

CEO Kevin Johnson

In mid-April, Starbucks CEO Kevin Johnson announced that the chain is preparing to reopen cafes and will ask all employees to return to work in early May as other locations reconfigure their store format. According to an Internal of the business community report, Johnson estimates that almost all of the Starbucks locations will be open and operational in June. In a letter to employees, Johnson said they will focus on finding new ways to serve customers while promoting social outreach when the stores reopen this summer.

"With governments, health care professionals, businesses, and citizens working together, there is evidence that many markets have actually" flattened the curve "and are now starting to see a decline in the number of new confirmed cases of COVID -19 ", wrote Johnson. "It inspires many people to define the next steps that will prioritize appropriate health issues while taking thoughtful and measured action to serve our communities."

Since the start of the first social distancing measures in mid-March, Starbucks initially closed all stores that did not have a drive-through and allowed other cafes to turn into delivery only businesses. The coffee chain also paid all employees, whether or not they worked shifts, and offered everyone who worked an extra $ 3 an hour, according to the Starbucks communications blog. But that will change in May, as workers are currently expected to return to cafes to work, and only high-risk employees who qualify for Starbucks 'Disaster Pay' program can continue to stay at home, Internal of the business community reports.

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Will all Starbucks cafes reopen at the same time?

Johnson said Starbucks will use its sites in China to provide insight into how the chain will reopen coffee stores in the United States. He said stores in areas not severely affected by the outbreaks in China opened first, while other stores in COVID-19 national epicenter, Hubei Province, remained closed more long time.

It seems likely that some cafes will continue to provide delivery and takeaway solutions during the summer, particularly in metropolitan areas like New York, Detroit, New Orleans and Boston, where COVID-19 has had more 'impact. Johnson said regional Starbucks executives will use the advice of local health officials on the date of their full reopening. "It is only by trying to exceed local, state and national health requirements that we will be ready to serve our communities," Johnson wrote in his letter to employees.

However, there could be a chance that your local Starbucks will close indefinitely due to financial constraints - especially if it is part of the corporate chain and not a franchisee. CNBC reports that Starbucks same-store sales fell 3% in the United States in the second quarter, and in the last week of March, the same category was affected by 70%. The coffee chain's shares also fell by 17% in 2020.