Starbucks (SBUX) stated on Sunday that it would cease in-store customer seating in North America for at least two weeks. It will also limit hours and is regrettably going to shutter a few stores in some high traffic areas.
In a memo sent to over 220,000 partners across the U.S. and Canada, Starbucks prepares to restrict customers to take-out orders only, and will temporarily close up company-operated stores in “high-social meeting places” like shopping malls and universities.
The coffee giant’s action dovetailed with other notable companies taken up the worldwide battle to promote social distancing, as COVID-19 continues to sweep across countries hammering the global economy.
It’s not the only affected business of course, as thousands of cafe’s and restaurants struggle with being unable to seat customers. However, moving to a takeaway model works better for pure coffee shops than it does for places that mix dining with coffee.
“Over the last 24 hours, as more communities, including the federal government, have called for increased social distancing to help contain the virus, we have made the decision to move to our next level of protocols,” Rossann Williams, president of U.S. company-operated business and Canada, wrote in a memo to Starbucks partners.
“Starting today, we will move to a ‘to go’ model across the U.S. and Canada for at least two weeks to help prevent prolonged social gathering in our cafés,” Williams added.
Both New York city and Seattle – two states hard hit by the virus, Starbucks will minimise operating hours or temporarily close certain stores, the memo stated.
“These are the actions we understand are effective based on our experience in China”- where the Chinese Government took strong action, and Starbucks was forced to shutter entire areas when the coronavirus first emerged, according to Williams.
In late January, Starbucks stated it closed a majority of its 4,000 China-based shops, in its fastest-growing and second-largest market. A month later, Starbucks was able to reopen most of the shops. At the moment, 90% of China store locations are now open.
Starbucks expects its sales to fall by 50% in China when compared to the same period last year, according to its regulatory filing statement.
