- Starbucks plans have more than 90% of its locations open by June 1, with reopenings starting next week.
- As stores open again, most orders will take place by drive-thru, delivery, and the new “entryway hand-off” for mobile orders.
- In select stores that do allow customers inside, Starbucks will remove seating and add social-distancing markers.
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As the US reopens business, Starbucks says it plans to have more than 90% of its locations open, with adjusted operations, by June 1.
Starbucks will begin opening stores next week, executives said on Tuesday. But the stores will look very different than pre-COVID-19 coffee shops.
Most will not allow customers inside, with customers picking up their orders at the door or by drive-thru.
Starbucks closed more than half its stores in the US and Canada because of the coronavirus pandemic, announcing on March 20 that only drive-thru locations would remain open. Locations with drive-thrus shut their interior areas, which resulted in an average sales decline of about 25% per location, according to executives.
"As we reopen in the US, I think we anticipate that the stores are going to reopen across the nation at a faster rate" than in China, CEO Kevin Johnson said during a call with investors on Tuesday. "But the format we're going to use ... in each store is going to be dependent on sort of what's happening in that particular store."
Starbucks is making major changes to allow customers to return to the coffee giant. Here is what the new normal at Starbucks will look like.
Starbucks is strongly emphasizing mobile orders, which will be picked up by drive-thru or the new "entryway hand-off" at most locations.
With the entryway hand-off, workers will set up areas in stores' entries where customers can pick up drinks without ever entering the store.
Only select stores will reopen their interior to the public and allow customers to place orders with a cashier.
In these stores, Starbucks will remove seating and add social-distancing markers.
More locations will also be delivering orders through Uber Eats.
Starbucks employees will now have their temperatures taken when they start their shift, as well as receive new training on updated cleaning and safety policies.
On March 20, Starbucks announced all workers would be paid whether or not they came to work, with those who did go to work receiving $3 extra per hour.
Starting next week, Starbucks employees will be required to attend work to be paid. Starbucks plans to phase out Catastrophe Pay and the $3 pay bump for employees who do show up at work in June.
Executives said Starbucks will decide when stores are ready to reopen based on an analysis of customer frequency, local government guidance, counties' rates of infection, and sentiment among customers and workers.
You can check if your local Starbucks is open and how it will be serving customer here.
Starbucks reported on Tuesday that consolidated revenue in the most recent quarter was $6 billion, a 5% drop compared to the same period last year, with same-store sales falling 10%. The company estimated that it lost close to $1 billion - roughly $915 million - due to the coronavirus pandemic, linked to store closures, shorter hours, restricted sales channels as American stores switched to drive-thru only, and fewer customers.
China's sales were hit hardest in the second quarter, with same-store sales dropping by 50%. In the US, same-store sales dropped 3% in the quarter.