Starbucks Korea cuts capacity, delays promotion after COVID-19 cluster (updated)

E-Mart

18/08/2020 07:40

(Adds comments from Starbucks customers)
    By Hyunjoo Jin and Heekyong Yang
    SEOUL, Aug 18 (Reuters) - Starbucks Corp's  SBUX.O  South
Korean unit is scrambling to curb the spread of coronavirus,
cutting seating capacity in its cafes and delaying a promotional
campaign after 50 cases were linked to one of its stores outside
of Seoul. 
    Starbucks' Korean business 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.   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 linked to cafes, restaurants
and other places.  urn:newsml:reuters.com:*:nL4N2FK11T
    South Korean health authorities are investigating how the
virus spread at a Starbucks outlet in the border city of Paju,
and have said infected people were not wearing masks and fresh
air may not have been properly circulated.
    "What happened at the Starbucks store in Paju was much
expected," said Yang Sae-rom, a 30-year-old office worker
outside a busy Starbucks in Seoul. "They should have advised
customers to wear masks and drawn fresh air in more often." 
    Starbucks Korea, a joint venture between Starbucks and
Korean retail giant E-Mart Inc  139480.KS , said it has reduced
seating capacity by more than 30% in all its stores in Seoul and
nearby areas after authorities on Sunday reimposed tighter
social distancing curbs.  urn:newsml:reuters.com:*:nL4N2FI012
    The coffee chain said it would also enhance hygiene rules
across all stores, recommend customers wear face masks and had
delayed a promotional campaign offering toy figures.
    "I think the place remains exposed to risks, because there
are a lot of people," said Seo chan-young, a 24-year-old
university student, as lunchtime crowds thronged a Starbucks
store.
    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. 
($1 = 1,184.6100 won)

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