In a letter to its staff, Starbucks announced on March 20 that it was moving to a drive-through-only model for at least two weeks in the United States. The company also confirmed expanded catastrophe pay for its staff. In its annual virtual shareholder’s meeting, the company announced continued recovery in China.
Coronavirus has led to the closing of businesses throughout the United States and several have changed their business models and allowed employees to work from home in a response to the crisis. In a letter on 20th March to its staff, Starbucks announced that it was moving to a drive-thru-only model for at least two weeks in the United States. The company had decided to close access to its cafes altogether for two weeks and limit its services to drive-thru only. However, the company has made exceptions for the cafes in and around hospitals and healthcare centers to serve frontline responders and healthcare staff. The decisions of the company applied only to its company-operated stores in the US and Canada. Its licensed partners were free to make their decisions regarding their properties. While it can cause some inconvenience to the loyal customers of Starbucks, nothing was above their nad their family lives noted Starbucks. Customers can order at drive-thru ordering points or using the company app and then pick up their orders at the drive-thru window. However, to be a part of the government’s ongoing efforts to curb the spread of Coronavirus, the cafes in or around hospitals would remain open and the company would remain in touch with the local, state, and the federal governments to asses the situation and decide the method of operation.
Starbucks has also offered a detailed ‘how-to’ guide for its loyal customers for ordering ahead. delivery is also an option for Starbucks customers. The Starbucks locations that are still open will continue to deliver to the customers through the Uber Eats app. In the letter from Rossann Williams, evp and president of U.S. company-operated business and Canada to company staff, Starbucks also announced a slew of measures aimed at helping its workers cope up with any kind of possible financial difficulties. Rosanna Williams wrote,
Any partner serving in our stores that remain open are there because they want to be there to serve our community at this time. To guarantee that, we are going to pay all store partners for the next 30 days, whether you come to work or choose to stay home. We understand the pressure you may feel, and we hope this brings you some reassurance that, especially in difficult times, we are a different kind of company.Starbucks letter to staff on operational changes folllowing the spread of Covid-19.
Starbucks Celebrates Continued Recovery in China
In its annual virtual shareholder’s meeting, Starbucks CEO Kevin Johnson announced that Starbucks was financially strong and had the resilience to manage through the situation caused by the spread of Covid-19. He also announced that the company was celebrating continued recovery in China where 90% of its stores were now open. The company plans to open a state-of-the-art Coffee Innovation Park (CIP) in China in 2022. The facility will include a roasting plant, warehouse, and distribution center. The $130 million investment in the CIP is first of its kind by Starbucks in Asia and the largest coffee manufacturing investment outside of the United States. By 2022, Starbucks aims to have 6,000 stores in China.