Hit by COVID-19 cases, Starbucks Korea cuts seat capacity, delays event

E-Mart

18/08/2020 05:35

SEOUL, Aug 18 (Reuters) - Starbucks Corp's  SBUX.O  South
Korean operation is scrambling to curb the spread of
coronavirus, cutting seating capacity in its cafes and delaying
a promotional event after nearly 50 cases were linked to one of
its stores outside of Seoul. 
    Starbucks' Korean unit was a bright spot for the U.S. coffee
chain, with the joint venture posting a profit surge in the
April-June quarter as the country quickly brought the COVID-19
outbreak under control. Globally, Starbucks swung to a loss
globally for the period.  urn:newsml:reuters.com:*:nL3N2EZ47V 
    But South Korea is battling a resurgence in virus cases in
Seoul and surrounding areas, with the largest outbreak connected
with a church and smaller outbreaks happening in cafes,
restaurants and other places. 
    South Korean health authorities are investigating how the
virus spread at the Starbucks outlet in border city of Paju,
saying infected people were not wearing masks and fresh air may
not have been properly circulated.
    Starbucks Korea, a joint venture between Starbucks and the
country's retail giant E-Mart Inc  139480.KS , has reduced
seating capacity by more than 30% in all its stores in Seoul
city, Gyeonggi province and Busan city after authorities on
Sunday reimposed tighter social distancing curbs in the Seoul
metropolitan area.  urn:newsml:reuters.com:*:nL4N2FI012
    The coffee chain said it would also enhance hygiene rules
across all stores, recommend customers wear face masks and
delayed a promotional event that offered Playmobil figures.
    South Korea on Tuesday reported 246 new cases of the novel
coronavirus, bringing the country's tally to 15,761 infections
with 306 deaths.  urn:newsml:reuters.com:*:nL4N2FJ1IZ
    Starbucks has more than 1,400 stores in South Korea, almost
as many stores as it has in Japan, which has more than twice the
population, according to its website. 
    Starbucks Korea last week reported an operating profit of
617 million won ($521,000) in the April-June period, up more
than 54% from the same period a year earlier. 
($1 = 1,184.6100 won)

 (Reporting by Hyunjoo Jin and Heekyong Yang; Additional
reporting by Sangmi Cha;)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))