Starbucks shuts 2,000 outlets as coronavirus prompts lockdown in China

Jacob Jarvis29 January 2020

Starbucks has closed around 2,000 outlets in China as businesses shut up shop in a bid to curb the spread of the killer coronavirus.

The death toll from the infection has reached 132, while China has seen at least 5,974 cases since it broke out in the city of Wuhan.

Starbucks has closed around half of its 4,292 outlets across China, following suit with a raft of other businesses and transport providers who have ceased operations in a bid to help contain the virus.

McDonald's has also closed restaurants in five locations across China, while destinations such as the nation's Disney resort and certain hotel chains have also shut down.

"Most" KFC and Pizza Hut restaurants in the Hubei province have also closed for the foreseeable future due to coronavirus concerns, a spokesman for fast food restaurant company Yum China said.

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CEO of Starbucks Kevin Johnson said the chain is responding "in a thoughtful and responsible way to protect our partners and support health officials and the government as they work to contain this public health risk".

He added: "I am proud of how Starbucks China is navigating a very dynamic situation."

The chain has reported a financial hit due to the closures, with shares falling one per cent in extended trading.

It has postponed an update to its financial forecast due to the outbreak. It expects the impact on its monetary situation to be material but temporary.

Around 56 million people are reportedly on lockdown due to the spread of the virus, while nationals from the US and Japan have been evacuated.

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