As May approaches, with spring weather luring more people out of their homes even in states which have standing stay-at-home orders, demand for the businesses many consider to be staples is rising again.
Starbucks closed more than half of their stores in North America in March, keeping open only locations with drive-thrus, and those with limited hours. According to Starbucks executives, locations that remained open saw a loss of about a quarter of their sales per location, even with the other closures. With half of the country staying at home, there was simply no demand. The coffee giant did, however, take care of their own. All workers were paid for April, whether or not their store was open, and those who actually came to work received an extra $3 an hour for the risks they faced in doing so.
But beginning in the first week of May, both the at-home pay and the $3 bonus will begin to be phased out as Starbucks stores re-open across the country. Locations will open in waves through May, based on demand, local infection rates, and the guidance of local governments. By June, the plan is for 90% of all stores to be open again, although still not for in-house dining. Orders will still be take-out-only, either at the drive-thru or at the door. Most stores will be redesigned in the process, with all seating removed and hand-off points arranged at the front doors.
Employees will have their temperatures taken at the start of each shift, wear masks, and be trained in new cleaning and safety policies, though just what that new training involves has not been shared.
Starbucks estimates that they have lost nearly a billion dollars in sales in the first quarter of 2020 by comparing to last year. That’s a 5% drop in revenue compared to last year, when they had been predicting growth due to an expanded product line and steadily increasing customer numbers.
Source: Business Insider
Editorial credit: Papin Lab / Shutterstock.com
