Coffee stores’ revenue to fall 50% in first two months amid epidemic
Amid the coronavirus epidemic, café chains have found their business severely battered with steadily rising losses that could last for a longer period.
Industry insiders said that due to the COVID-19 outbreak, major coffee brands such as Starbucks, Luckin Coffee and Costa may see their revenues fall by more than 50 percent in the Chinese mainland from January to February.
Compared with other more demanding needs, the needs for coffee and milk tea products is much less than before, said Zhao Jingqiao, director of the Service Economy and Catering Industry Research Center under the Chinese Academy of Social Sciences.
“The outbreak has definitely had a big impact on the coffee business, but the overall impact depends on the resumption of work and the control of the outbreak,” he said.
Zhao said that the impact will last for a much longer period. “If work resumes in March, they won’t be back to normal until May or June. After all, the resumption of work in some cities would still be subject to the premise of preventing and controlling the epidemic,” he said.
A customer service representative of Luckin Coffee said on Sunday that many stores remain closed due to the epidemic and even though some stores remain open, the services are mostly for takeaway and the service hours are shortened. “Because coffee is not a necessity at present, the government does not support an early opening,” aid the representative.
In a statement that Starbucks sent to the Global Times on Sunday, they said that Starbucks stores in other parts of the country are gradually resuming operations, with the exception of stores in Hubei Province, the epicenter of the virus.
In order to keep the business running smoothly, Starbucks has launched a series of protective measures including all ready-to-drink beverages that are prepared in a “level 1 protected” environment.
Meanwhile, staff should take their temperature before starting work. All customers entering the store should wear masks and take their temperature at the door. Customers can order at a distance of one meter from their partners to ensure that a safe distance is maintained. In addition, the corresponding express delivery service is also upgraded online to cater to the majority of customers at home.