Starbucks has reopened most of its outlets in China after closing thousands of its stores due to a public health concern. The CEO of Starbucks claimed that the epidemic has slowed marking the perfect time to resume business in the country.
An announcement from Starbucks CEO Kevin Johnson via Twitter revealed that about 85 percent of all stores in China have reopened. He shared a video from Belinda Wong who is an employee of Starbucks China taken at the Shanghai Roastery.
At present, China has about 4,200 stores across the country. Half of which were closed due to the public health crisis since late January this year. In a letter to its employees, Johnson said that there have been early signs of a recovery across China making it the perfect time to resume business.
Johnson also said that there are fewer casualties in the country due to the public health crisis and that the regions where the reopened stores are located have recovered from the crisis. He also claimed that business situations across the country also improved.
Wong stated in the video that the closure of most Starbucks stores in China was necessary to uphold public safety and that of the company's partners and customers. She also said that the entity was set at actively participating with the country in helping to stop the severity of the public health crisis by closing the stores.
At present, Starbucks is still assessing the financial impact that the public health crisis has caused. The company has referred to China as its second-largest and fastest-growing market globally.
Johnson then added that the company is still keeping an eye on the effects of the situation by coordinating with local health officials. He also claimed that business operations observe precautions from market to market to ensure that Starbucks can still uphold the health and well-being of its customers and partners.
According to recent financial data, Starbucks traded two percent lower at around 78.90 per share. Its company shares have fallen by about 12 percent in the last month.
According to The Motley Fool, Starbucks recently partnered with Beyond Meat for its plant-based products. These products would form part of the ingredients offered by Starbucks including the breakfast sandwich that would include Beyond Meat's sausage product.
A recent survey by the American Chamber of Commerce in China also revealed that most US companies operating in the country are expecting revenue declines by April this year. This includes Starbucks stores in China.
