Starbucks announced a boost on its employee wages to help them cope with the financial troubles associated with the pandemic. it announced that its partners who could continue working from home would be eligible for Starbucks Service Pay including an additional rate for more hours of work.
According to Yahoo! Finance, Starbucks announced that Starbucks would increase the wage rate of their on-the-job workers. On an update made last Sunday, the company claimed that its partners who would would remotely at home would be elibible for Starbucks Service Pay.
The Starbucks Service Pay would allow its employees to earn an extra three USD per hour for shifts worked at home from March 19 until April 12. The announcement also said that those who choose to refrain from work would also be offered a catastrophe pay until April 19.
Starbucks stock value increased last Friday as investors reward the company for continuing their services in places that observe home quarantines. The increase was significant after the company's stock plunged last Thursday.
According to CNBC News, Starbucks stock jumped by nine percent due to the continued support of investors who rewarded the company for its continued efforts in places where home quarantines are observed.
The reopening of Starbucks of its Wuhan stores indicated that the US might bounce back from the financial crisis it currently experiences due to the public health crisis. According to CNBC's Jim Cramer last Thursday, China's claim that recovery of the economy and from that of the public health crisis might be reliable. He claimed that if the Chinese government were 'lying' about such recovery, then Starbucks CEO Kevin Johnson would not have reopened his stores in the most affected province in China.
By the end of March, Starbucks would have reopened about 90 percent of its stores that were temporarily shut down due to the pandemic. The company was said to expect a revenue hit of 400 to 430 million USD for the second fiscal quarter of 2020.
Starbucks also temporarily removed its seating at its US and Canadian stores and currently observes a to-go model in those areas. The policy was said to be a response to the social distancing mandate to help stop the spread of the pandemic in those jurisdictions.
Last Tuesday, Starbucks stocks plunged by 14.3 percent and were down again last Wednesday. According to Johnson, he has expanded sick leaves for the company's workers in the US and Canada and imposed new public offers by Wednesday.
According to The Motley Fool, Starbucks is planning to build a sustainable roasting plant in China that would start operations by 2020. The report claimed that the company has been ensuring business strategies to produce more revenues while keeping its customers and employees safe.
The report also highlighted that Starbucks is taking a big hit with its revenues since its business relies heavily on social interactions. However, it was revealed that it would neutralize a 'third space' aspect that would support its go-to feature where its customers may order its products and services through delivery.
The coffee chain also announced that its cafes would cease catering to customers for a sit-down. It, however, revealed that it would continue serving its customers on a drive-thru basis to encourage social distancing.
