Starbucks, McDonald's Step Up Cleaning Efforts -- WSJ
March 05 2020 - 3:02AM
Dow Jones News
By Heather Haddon
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 5, 2020).
Starbucks Corp. has instructed employees to step up cleaning at
its thousands of U.S. cafes, as a domestic restaurant industry
already working against stagnant demand reacts to a new threat to
sales and public health.
The coffee giant and McDonald's Corp. are among restaurant
chains adjusting operations and stepping up cleaning as the
coronavirus epidemic gains ground in the U.S. More than 130 cases
of the new coronavirus had been diagnosed across the U.S. as of
Wednesday.
Sales at U.S. restaurants could fall this year as the epidemic
expands domestically and more customers avoid public places,
analysts say. Fitch Ratings said the epidemic poses a greater risk
to restaurants than other sectors of the economy, exacerbating
pressure on an industry already working to reverse stagnant
traffic. Same-store traffic at U.S. restaurant chains fell 3.1%
last year, according to industry firm Black Box Intelligence.
Starbucks earlier this week sent a memo to store employees
instructing them to clean cafes more often and thoroughly.
Employees were told to regularly sanitize door handles, chairs,
tables and coffee bars, according to the memo, which was reviewed
by The Wall Street Journal. Workers were told to sanitize bathrooms
and ordering machines frequently, and employees were told to
regularly wash their hands.
"We want to do whatever we can to support our partners and
customers," the memo states.
McDonald's said it had advised its U.S. operators to sanitize
door handles, order kiosks, counters, tables and restrooms more
frequently. The burger giant also recommended stores provide hand
sanitizer to customers and workers in lobbies and behind the front
counter. Workers should use hand sanitizer to supplement frequent
hand washing, the company said, adding that it created an internal
group in January to assess the daily impact of the epidemic on its
operations around the globe.
Starbucks said the more intensive cleaning regimen should take
about 30 minutes a day and should be performed during peak times.
The company recommended that managers add up to 1% to their planned
employee hours to handle the work.
The company also told workers to stay home if they are ill, keep
their fingernails short and limit the amount of jewelry they wear.
The chain offers paid sick leave for workers, a rarity among big
retail and restaurant chains.
Starbucks runs 8,870 cafes in the U.S. and licenses 6,320 more
to outside operators.
The coffee giant said in a letter Wednesday it was restricting
customers from bringing in their own cups for refills for now, but
would continue to give 10-cent discounts to customers who do.
The company said it restricted all business-related travel
through March 31, and has postponed large meetings.
The chain has been in regular contact with stores, including
licensees across the globe, the company said.
"We are navigating this situation with nimbleness, learning and
adapting as new information is made available," said Rossann
Williams, Starbucks president for U.S. company-operated business
and Canada, in the letter to be distributed to employees and
customers.
The epidemic could benefit chains that have invested in delivery
and mobile-pay options, analysts said, while hurting those that
haven't. In China, where the new coronavirus emerged late last
year, restaurant food delivery rose 20% after the epidemic hit
while customer visits dropped overall, according to market-research
firm NPD Group Inc.
Restaurant chains such as Yum Brands Inc. sought to curb the
loss of sales in China by offering more delivery to people staying
home.
Starbucks closed more than 2,000 of its stores in China, its
second-biggest market, during the peak of the outbreak there. The
company said last week that about 85% of those stores had
reopened.
The company also said Wednesday that it was no longer holding,
due to the epidemic, its annual shareholders meeting in person that
was scheduled to take place March 18 at a theater in downtown
Seattle, where it has its headquarters. The company said it would
hold the meeting virtually instead. Target Corp. on Monday
broadcast its annual investors meeting online rather than hold it
in person in New York City as originally planned.
Washington state is among the places in the U.S. hardest hit by
the epidemic. Ten of the 11 deaths resulting from confirmed cases
of the new virus have been in Washington. An Amazon Inc. worker in
Seattle tested posted for coronavirus Wednesday.
Write to Heather Haddon at heather.haddon@wsj.com
(END) Dow Jones Newswires
March 05, 2020 02:47 ET (07:47 GMT)
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