Reference no: EM133387799

Question: In the early days of the coronavirus pandemic in March 2020, businesses throughout the world were impacted. Social distancing become the buzzword, and people generally tried to avoid unnecessary contact with others. But as the coronavirus spread, more drastic measures were taken. City, county, and state governments mandated that certain types of businesses close to the public.

For a company like Starbucks, being on the forefront of safe business practices meant the firm took the lead in customer engagement and safety. At first, the changes had very little effect on sales. In fact, by mid-March, customer traffic at Starbucks actually rose by 4.2%.(1) This was at the time that several states, such as Ohio, New Jersey, and New York, began forcing restaurants to close. The company, though, took proactive measures to protect employees and guests. First, high-traffic locations, like university campuses and shopping malls, were closed entirely. Next, in those cities that had the highest cases of the virus-Seattle and New York City-hours were reduced and some locations were closed completely.(2)

By March 20, the virus had spread rapidly throughout the United States. The company made the difficult decision to close the dining areas of most of its North American locations for two weeks. However, drive-thru lanes remained open. Because these limited operations meant that fewer employees were needed at each store, Starbucks announced that workers would continue to be paid for 30 days. In addition, any employees that thought they may have been exposed to the coronavirus were ordered to stay home-but their pay would continue.(3)

Kevin Johnson, Starbucks CEO, wanted employees of the chain to understand how important they were to the company. "I am inspired," he said, "by our Starbucks store partners around the world who proudly wear the green apron and who are rising to the occasion. They demonstrate our resilience and our commitment to the communities we serve."(4) In response to concerns that employees had about possibly being exposed to the coronavirus during the course of their daily tasks, Johnson reiterated Starbucks' policy of paying employees for 30 days regardless if their store is closed. "We believe no partner should be asked to choose between work and their health," he said.(5)

Johnson believes that being an effective business leader is ensuring that employees are cared for-especially during a global crisis. "It is the responsibility of every business," he said, "to care for its employees during this time of uncertainty, shared sacrifice, and common cause."(6) He went on to acknowledge store managers and the frontline employees. "I want to extend a special thank you to our store managers for their tireless efforts to lead our stores and recognize our baristas for going above and beyond during this time."(7)
Questions

If you were a Starbucks employee in March 2020, would you be stressed? Why or why not?

For those employees who were experiencing stress in March 2020 due to the coronavirus, how could managers help them cope with that stress?

Do you agree with the steps Starbucks took in protecting employees and customers? Explain.

If you were Kevin Johnson, what would you have done differently to manage Starbucks' response to the coronavirus pandemic?