Starbucks in China Reopens After Half of Stores Closed... "85% Operating"

[Asia Economy Beijing=Special Correspondent Sunmi Park] Starbucks, which had closed about half of its stores in China due to the spread of COVID-19, is reopening its stores. It has been revealed that about 85% of the stores are already open and operating.

According to CNBC on the 27th (local time), Kevin Johnson, CEO of Starbucks, stated in a message to employees that 85% of the stores in China have resumed operations. The Shanghai Roastery Reserve, the largest store in China, has also reopened. CEO Kevin added, "As the rate of new confirmed cases in China slows down, early signs of recovery are emerging."

Starbucks has about 4,300 stores in China. China is Starbucks' second-largest market worldwide. In the first quarter of fiscal year 2020 (October to December 2019), 10% of sales came from China. However, when the COVID-19 outbreak appeared in January, Starbucks closed about half of its stores in China.

Meanwhile, Starbucks hinted that the temporary closure of stores in China would impact business performance but did not disclose the specific extent of the financial losses.

The number of new confirmed cases across China is rapidly decreasing. On the 28th, the National Health Commission of China announced that as of midnight, 327 new COVID-19 cases were reported nationwide. On the 18th, the number of new confirmed cases was about 1,700, but it dropped to the 800s on the 19th, decreased to around 400-500 from the 23rd to the 26th, and has now fallen to the 300s.