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| Starbucks’ Gathering-Spot Model Is Threatened by Coronavirus | Starbucks’ Gathering-Spot Model Is Threatened by Coronavirus |
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| For millions of people, visiting Starbucks is a daily ritual. But these are extraordinary times for one of the world’s most popular brands. | For millions of people, visiting Starbucks is a daily ritual. But these are extraordinary times for one of the world’s most popular brands. |
| As the virus sickened tens of thousands of people in China, the company closed more than 2,000 stores. When it arrived in the United States, the first serious outbreak was in Washington, the coffee chain’s home state. And last Friday, Starbucks became one of the first major American companies to have an employee who tested positive for the infection. | As the virus sickened tens of thousands of people in China, the company closed more than 2,000 stores. When it arrived in the United States, the first serious outbreak was in Washington, the coffee chain’s home state. And last Friday, Starbucks became one of the first major American companies to have an employee who tested positive for the infection. |
| The last few weeks have been “very challenging times for all of us,” said Rossann Williams, the executive who oversees the company’s 200,000 workers in the United States. “We’re all learning as we go.” | The last few weeks have been “very challenging times for all of us,” said Rossann Williams, the executive who oversees the company’s 200,000 workers in the United States. “We’re all learning as we go.” |
| Starbucks has long marketed itself as a social gathering spot — a “third place” between work and home, a symbol of normalcy for millions of people who buy coffee every day. Its bustling cafes are designed to build community and promote interaction between customers and baristas. | Starbucks has long marketed itself as a social gathering spot — a “third place” between work and home, a symbol of normalcy for millions of people who buy coffee every day. Its bustling cafes are designed to build community and promote interaction between customers and baristas. |
| In recent days, however, that philosophy has come up against the threat of a rapidly spreading pandemic that has made people anxious about gathering in public places and sent shock waves through the global economy. | In recent days, however, that philosophy has come up against the threat of a rapidly spreading pandemic that has made people anxious about gathering in public places and sent shock waves through the global economy. |
| Now cafes could start to empty out, as public health authorities urge people to work from home and avoid crowds. For service workers like the baristas at Starbucks, the threat of infection is especially severe. | Now cafes could start to empty out, as public health authorities urge people to work from home and avoid crowds. For service workers like the baristas at Starbucks, the threat of infection is especially severe. |
| To reassure the public, Starbucks has prohibited customers from using their own cups and established an intensive cleaning regimen, requiring employees to wash their hands and disinfect “high touch” surfaces every half-hour. Even stricter protocols may lie ahead if the situation worsens, Ms. Williams said, like mandatory gloves and face masks for employees or the removal of chairs and tables. She said stores in the United States could be temporarily closed in extreme cases. | To reassure the public, Starbucks has prohibited customers from using their own cups and established an intensive cleaning regimen, requiring employees to wash their hands and disinfect “high touch” surfaces every half-hour. Even stricter protocols may lie ahead if the situation worsens, Ms. Williams said, like mandatory gloves and face masks for employees or the removal of chairs and tables. She said stores in the United States could be temporarily closed in extreme cases. |
| The outbreak is already hurting Starbucks’ bottom line. While more than 90 percent of its stores in China have reopened, the company told investors last week that it expected sales in China this quarter to fall by around 50 percent, or as much as $430 million, from a year ago. The company said it was too early to say how the virus would affect its business outside China. Starbucks’ stock price has fallen more than 25 percent over the last month. | The outbreak is already hurting Starbucks’ bottom line. While more than 90 percent of its stores in China have reopened, the company told investors last week that it expected sales in China this quarter to fall by around 50 percent, or as much as $430 million, from a year ago. The company said it was too early to say how the virus would affect its business outside China. Starbucks’ stock price has fallen more than 25 percent over the last month. |
| The virus’s toll on the company’s workers could also be significant. | The virus’s toll on the company’s workers could also be significant. |
| “They’re the ones who are more likely to be exposed, because they’re out in the public, and also more likely to pass it on again,” said Elise Gould, a senior economist at the Economic Policy Institute. | “They’re the ones who are more likely to be exposed, because they’re out in the public, and also more likely to pass it on again,” said Elise Gould, a senior economist at the Economic Policy Institute. |
| Across the industry, they are also less likely to have health insurance or paid sick leave. “It exposes the economic inequality that already exists,” Ms. Gould said. | Across the industry, they are also less likely to have health insurance or paid sick leave. “It exposes the economic inequality that already exists,” Ms. Gould said. |
| On March 5, Starbucks temporarily closed a store near the Seattle Art Museum after an employee tested positive for the virus. The news reached senior leaders at 9 p.m. By 9 a.m. the next morning, the store had been thoroughly sanitized, and it reopened on Monday. All the employees who had worked closely with the person who tested positive were told to stay home for two weeks, with pay. | On March 5, Starbucks temporarily closed a store near the Seattle Art Museum after an employee tested positive for the virus. The news reached senior leaders at 9 p.m. By 9 a.m. the next morning, the store had been thoroughly sanitized, and it reopened on Monday. All the employees who had worked closely with the person who tested positive were told to stay home for two weeks, with pay. |
| In its marketing, Starbuck has long highlighted its efforts to promote the well-being of employees, whom the company calls “partners,” such as offering health insurance to part-time workers. | In its marketing, Starbuck has long highlighted its efforts to promote the well-being of employees, whom the company calls “partners,” such as offering health insurance to part-time workers. |
| Even while its stores in China were closed, Starbucks continued to pay the majority of its salaried workers, a group that includes many baristas, according to a recent securities filing. | Even while its stores in China were closed, Starbucks continued to pay the majority of its salaried workers, a group that includes many baristas, according to a recent securities filing. |
| And on Wednesday, Starbucks told its workers in the United States that it would provide up to two weeks of paid leave to any employee who was infected with the virus or had extended contact with a co-worker or household member who tested positive. (Under its previously established policy, Starbucks allowed employees to accrue an hour of sick time for every 30 hours worked: A barista working 23 hours a week would accumulate about five sick days over a year.) | And on Wednesday, Starbucks told its workers in the United States that it would provide up to two weeks of paid leave to any employee who was infected with the virus or had extended contact with a co-worker or household member who tested positive. (Under its previously established policy, Starbucks allowed employees to accrue an hour of sick time for every 30 hours worked: A barista working 23 hours a week would accumulate about five sick days over a year.) |
| Still, in interviews, Starbucks employees expressed concern that the enhanced safety measures were at odds with on-the-ground realities. While few questioned the wisdom of the new protocols, some said the policies were putting more pressure on staff who already felt overworked. | Still, in interviews, Starbucks employees expressed concern that the enhanced safety measures were at odds with on-the-ground realities. While few questioned the wisdom of the new protocols, some said the policies were putting more pressure on staff who already felt overworked. |
| A Seattle-area employee who requested anonymity to speak frankly about the company said it was unrealistic for employees to perform the full cleaning process every 30 minutes when cafes were busy. An Atlanta-area worker who also declined to be named said the cleaning duties had pulled workers away from the counter, creating longer lines and larger crowds that may have inadvertently increased the risk of contagion even as the company tried to defuse it. | A Seattle-area employee who requested anonymity to speak frankly about the company said it was unrealistic for employees to perform the full cleaning process every 30 minutes when cafes were busy. An Atlanta-area worker who also declined to be named said the cleaning duties had pulled workers away from the counter, creating longer lines and larger crowds that may have inadvertently increased the risk of contagion even as the company tried to defuse it. |
| Underlying the strain at Starbucks is the company’s so-called lean staffing model, a common feature of retail and fast-food outlets in which managers seek to minimize the number of workers assigned to each store, often with the help of software that predicts customer traffic. The goal is typically to have just enough workers to cover demand, and no more, leaving little margin for error. | Underlying the strain at Starbucks is the company’s so-called lean staffing model, a common feature of retail and fast-food outlets in which managers seek to minimize the number of workers assigned to each store, often with the help of software that predicts customer traffic. The goal is typically to have just enough workers to cover demand, and no more, leaving little margin for error. |
| Like many other companies, Starbucks gives managers strict “labor budgets,” and over the years some have said they were disciplined for exceeding them. | Like many other companies, Starbucks gives managers strict “labor budgets,” and over the years some have said they were disciplined for exceeding them. |
| “The lean model can be quite unforgiving,” said Saravanan Kesavan, a retail expert at the University of North Carolina. “Store managers are going to have a lot more difficulty managing absenteeism in stores that employ lean staffing compared to other stores that do not.” | “The lean model can be quite unforgiving,” said Saravanan Kesavan, a retail expert at the University of North Carolina. “Store managers are going to have a lot more difficulty managing absenteeism in stores that employ lean staffing compared to other stores that do not.” |
| Ms. Williams, the Starbucks executive, said managers were free to staff their stores at whatever level they believed was appropriate given business trends and labor budgets. | Ms. Williams, the Starbucks executive, said managers were free to staff their stores at whatever level they believed was appropriate given business trends and labor budgets. |
| “Bonuses have nothing to do with the labor they spend or invest,” she said. “Store managers are 100 percent incentivized to drive revenue by making customers and partners happy.” | “Bonuses have nothing to do with the labor they spend or invest,” she said. “Store managers are 100 percent incentivized to drive revenue by making customers and partners happy.” |
| But Starbucks workers said their managers often tried to dissuade them from calling in sick or pressed them to find their own replacements if they had to miss work. Some employees said they were reluctant to stay home because of the burden it would place on co-workers and supervisors. | But Starbucks workers said their managers often tried to dissuade them from calling in sick or pressed them to find their own replacements if they had to miss work. Some employees said they were reluctant to stay home because of the burden it would place on co-workers and supervisors. |
| “No one likes calling out, because everyone will be short staffed,” said Michelle Styczynski, an employee at a Starbucks in Dulles International Airport in Virginia. “The manager will sometimes be angry. Co-workers will be frustrated.” | “No one likes calling out, because everyone will be short staffed,” said Michelle Styczynski, an employee at a Starbucks in Dulles International Airport in Virginia. “The manager will sometimes be angry. Co-workers will be frustrated.” |
| Last year, Ms. Styczynski said, she went to work despite having a red rash up and down her arms. “I was afraid,” she said. | Last year, Ms. Styczynski said, she went to work despite having a red rash up and down her arms. “I was afraid,” she said. |
| Updated June 22, 2020 | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | |
| While Starbucks directly owns and operates most of its locations in the United States, the airport stores are operated by HMSHost, which has a licensing agreement with Starbucks. | While Starbucks directly owns and operates most of its locations in the United States, the airport stores are operated by HMSHost, which has a licensing agreement with Starbucks. |
| Laura E. FitzRandolph, HMSHost’s chief human resources officer, said in a statement that employees began accruing paid sick time on their first day and that the company was offering up to 14 days of additional paid leave to any employee who receives a coronavirus diagnosis. | Laura E. FitzRandolph, HMSHost’s chief human resources officer, said in a statement that employees began accruing paid sick time on their first day and that the company was offering up to 14 days of additional paid leave to any employee who receives a coronavirus diagnosis. |
| The fast-food and retail industries have long known that they are vulnerable to epidemics. But they have sometimes played down the threat. | The fast-food and retail industries have long known that they are vulnerable to epidemics. But they have sometimes played down the threat. |
| Not long after the SARS outbreak in 2003, the possibility of a pandemic was the first threat to its business that Starbucks listed in the “risk factors” section of its 2005 annual report. In its most recent annual filing, however, the company placed pandemic risk far lower on the list, after weakening economic conditions, changing consumer tastes, rising real estate costs, and natural or man-made disasters. | Not long after the SARS outbreak in 2003, the possibility of a pandemic was the first threat to its business that Starbucks listed in the “risk factors” section of its 2005 annual report. In its most recent annual filing, however, the company placed pandemic risk far lower on the list, after weakening economic conditions, changing consumer tastes, rising real estate costs, and natural or man-made disasters. |
| Across the service industry, many employees face pressure to work even when they are sick. More than half of people who work at hotels and in food service do not receive paid sick leave, according to the Department of Labor. That is also true of about one-third of workers in the retail industry. | Across the service industry, many employees face pressure to work even when they are sick. More than half of people who work at hotels and in food service do not receive paid sick leave, according to the Department of Labor. That is also true of about one-third of workers in the retail industry. |
| Two McDonald’s workers said in interviews that they almost always worked when sick for fear of missing a paycheck. “We have no choice,” said Fran Marion, a McDonald’s worker in Kansas City, Mo. “If I’m sick, call off, that means I have to miss half my rent, putting food on the table for my kids.” | Two McDonald’s workers said in interviews that they almost always worked when sick for fear of missing a paycheck. “We have no choice,” said Fran Marion, a McDonald’s worker in Kansas City, Mo. “If I’m sick, call off, that means I have to miss half my rent, putting food on the table for my kids.” |
| McDonald’s said it was increasing the number of hand sanitizer dispensers at its restaurants and cleaning surfaces more frequently. It also said it would pay employees at the roughly 5 percent of its U.S. locations that the company owns for 14 days if they are asked to quarantine themselves. | McDonald’s said it was increasing the number of hand sanitizer dispensers at its restaurants and cleaning surfaces more frequently. It also said it would pay employees at the roughly 5 percent of its U.S. locations that the company owns for 14 days if they are asked to quarantine themselves. |
| And while paid-leave policies vary by franchise and location, the company said, it expects all workers to stay home when sick. | And while paid-leave policies vary by franchise and location, the company said, it expects all workers to stay home when sick. |
| Starbucks has the same expectation, Ms. Williams said. Still, she said, she is confident that the chain will remain a gathering place, despite the growing anxiety about the pandemic. | Starbucks has the same expectation, Ms. Williams said. Still, she said, she is confident that the chain will remain a gathering place, despite the growing anxiety about the pandemic. |
| “My gut tells me that when we get through this, people are going to want to go back to normalcy,” she said. “I do not believe that anything will ever negatively impact the sacredness of the third place in Starbucks stores. It’s never changed in 50 years, and I don’t think it’s going to change in the next 50 years.” | “My gut tells me that when we get through this, people are going to want to go back to normalcy,” she said. “I do not believe that anything will ever negatively impact the sacredness of the third place in Starbucks stores. It’s never changed in 50 years, and I don’t think it’s going to change in the next 50 years.” |
| Peter Eavis contributed reporting. | Peter Eavis contributed reporting. |