Starbucks reopens in Shanghai

Shanghai lifted its two-month lockdown on Wednesday. So far, the coffee chain has reopened about 600 of its 940 stores in the city, according to Starbucks spokesman Jaime Riley.

Employees “look forward to serving customers, reconnecting with their local communities and helping to gradually return the city to normalcy,” Riley said, adding that “we are also working with local authorities to gradually resume dining at inside as soon as possible.”

China’s largest city was in some form of lockdown from late March until this week, leaving tens of millions confined to their homes, disrupting business in virtually every sector and bringing the city to a standstill.
Since the city lifted its restrictions, residents have tried to get back to normal. Photos provided by Starbucks show customers visiting the Starbucks Reserve Roastery in Shanghai, which reopened on Friday.
Still, the process of reopening the city may not be so smooth. Just a day after restrictions were officially lifted, several neighborhoods in Shanghai have been locked down again after Covid cases were discovered.
The reopening of China is important for Starbucks (SBUX)which sees the region as the key to its future growth.

During the company’s last earnings call in May, interim CEO Howard Schultz said he remained “convinced that Starbucks’ China business will ultimately be larger than our U.S. business.”

He noted that “our aspirations around China have never been greater”, but called the lockdowns “unprecedented”, adding that “conditions in China are such that we have virtually no ability to predict our performance in China in the second half of the year”. .”

Belinda Wong, president of Starbucks China, added at the time that about a third of Starbucks Chinese restaurants were either closed or open for delivery and pickup only, and most of the remaining stores were “operating under strict safety protocols. that interfere with our traffic”. and operations.”

There are currently around 5,600 Starbucks in China. The company wants to have 6,000 Chinese sites by the end of the year.

– Michelle Toh of CNN Business contributed to this report.

Back To Top