Starbucks unveils plan to reopen US stores beginning in May

Company says it will transition to a new phase of 'monitor and adapt'

Starbucks unveils plan to reopen stores (Getty)

Starbucks has unveiled a plan to reopen "as many stores as we can" in the US amid the coronavirus pandemic.

On Thursday, the coffee chain’s CEO Kevin Johnson detailed the plan, which relies on a “monitor and adapt” strategy, in an open letter to employees.

According to Johnson, the business model will follow a gradual expansion similar to the one undertaken in China.

Acknowledging that there is evidence that many markets have “flattened the curve”, Johnson said: “What does this mean for Starbucks? As was the case in China, this means we will gradually expand and shift the customer experiences we enable in our stores. For example, some Starbucks stores will continue as drive-thru only, others may utilise the mobile ordering experience for contactless pickup and delivery and others may reopen for ‘to-go’ ordering.

“As we experienced in China, this will be a journey and we are thoughtfully preparing for this next phase as we adapt in the US,” he added.

In the letter, Johnson also explained that the decision was a “human” one made with four factors in mind: “The local status of the public health crisis, guidance from health and government officials, community sentiment and store operational readiness.”

According to the coffee chain, the new business model will be made easier by the fact that more than 60 per cent of its stores in the US have drive-thrus and “approximately 80 per cent of all customer orders were placed ‘on-the-go’ even prior to Covid-19.”

Starbucks also said it has been testing a variety of service options over the last few weeks at more than 300 stores across the US.

In a separate letter from Starbucks’ Rossann Williams, evp and president of US company-operated business and Canada, it was announced that the coffee company is aiming for May, and plans to open as many stores as it can beginning on 4 May.

In addition to reopening stores, the company said it will be extending “Service Pay through the end of May with an additional $3 per hour for anyone who is healthy and choosing to work”.

“Partners, this pandemic has touched every one of the 32,000 communities Starbucks serves around the world, creating tragic loss, intense anxiety, and now disruptive economic consequences,” Johnson concluded. “It has also brought out some of the best in humanity, including your continued demonstrations of resilience and commitment to supporting the communities we serve.”

The move to reopen comes after Starbucks announced in mid-March that it was closing most of its stores in the US as the number of coronavirus cases continued to increase.