Starbucks' Latest Move Reveals When They Plan to Fully Reopen
On Monday, June 1, The Wall Street Journal reported on a recent Starbucks announcement that will affect numerous employees for the months ahead. Starbucks plans on reducing working hours to match the reduced customer demand during the coronavirus pandemic, at least until the different stay-at-home mandates cease. However, with this announcement, Starbucks leaders mentioned employees taking unpaid leave until September, which could mean Starbucks will be fully reopening by that time.
While this detail is not an official announcement, Starbucks clearly has their minds set on the month of September to at least have business up-and-running in their thousands of U.S. coffee shops by that time. For now, numerous locations have been keeping their doors closed and offering drive-through and takeout only for customers.
Starbucks reports decreased earnings.
The company's decision to keep doors closed and reduce hours comes after a recent earnings report from April where the coffee chain showed its revenue is down by 46.7% since this time last year. The company also announced that they feel the impact from the pandemic will only intensify their third-quarter earnings, which means Starbucks could be in deep financial trouble.
However, numerous restaurants—both chains and small businesses—are experiencing detrimental financial losses during this time. TGI Fridays announced that it will be closing more than 70 of its locations, and numerous other chains will be closing some shops (more than 600 restaurants have closed for now). Even small family-owned restaurants are having a hard time coping.
So what's to happen to Starbucks moving forward? Starbucks has already experienced major changes within its stores, including temporarily suspending its reusable cups program and closing all dining rooms. However, because it's been reported that 80% of Starbucks orders were "to-go" before the coronavirus shutdown, it seems that Starbucks wouldn't take much of a financial hit. The company's CEO even announced plans to speed up the company's drive-thru-based model, which originally was a three-to-five-year plan that has now been sped up to 12 or 18 months.
Nevertheless, with the announcement of reducing worker hours and Starbucks still taking a huge financial hit according to their earnings report, it will be interesting to see how this popular coffee chain will survive. Like every restaurant and business trying to make up for so many financial losses, right now the outcome remains the same: Only time will tell.
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