What’s taking place
Shares of Starbucks (NASDAQ: SBUX) opened sharply decrease on Thursday, as rising considerations concerning the results of the novel coronavirus pandemic on companies and the financial system drove a broad-based market sell-off.
As of 11 a.m. EDT, Starbucks shares have been down about 7% from Wednesday’s closing value.
Like nearly each enterprise with a retail presence, Starbucks is uncovered to the rising probability that buyer foot visitors will decline sharply as folks keep residence to attempt to sluggish the unfold of COVID-19.
Picture supply: Starbucks.
To its credit score, Starbucks has moved shortly to attempt to answer virus-related considerations:
- For purchasers, CEO Kevin Johnson mentioned the corporate will implement protective measures at its shops on a store-by-store foundation as wanted. These may embrace eradicating tables to extend distances between patrons, increasing cellular order-and-pay capabilities, and if needed, changing some shops to drive-through-only stations.
- For workers, there is a new “catastrophe pay” provision, underneath which staff recognized with COVID-19 will get 14 days to “self-quarantine” at full pay, whereas these exhibiting signs will get three paid days of paid depart after a 24-hour self-quarantine.
For Starbucks buyers, the factor to do now could be to observe and wait. The corporate appears to have executed what it could possibly to be prepared for a fast-growing pandemic; the query is, how lengthy will it final?
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