Starbucks closes 2,000 stores in China over coronavirus outbreak

Noel Celis / AFP

Starbucks has delayed a planned update to its 2020 financial forecast after being hit by the coronavirus outbreak.

The Seattle-based coffee chain has temporarily closed more than half of its stores in mainland China, making up about 10 per cent of its global revenue. 

It's top officials, however, remain optimistic, claiming that its long-term double-digit growth expectations will remain intact. 

Starbucks is responding to the virus "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," CEO Kevin Johnson said.

The virus, which originated in the Chinese city of Wuhan, has so far killed more than 100 people in China. 

Meanwhile, Chinese coffee chain Luckin Coffee said it will keep stores closed in Wuhan throughout the Lunar New Year holidays.

More from Business

  • Musk-led group makes $97.4 bln bid for control of OpenAI

    A consortium led by Elon Musk offered $97.4 billion (AED 357 trillion) to buy the nonprofit that controls OpenAI, another salvo in the billionaire's fight to block the artificial intelligence startup from transitioning to a for-profit firm.

  • DEWA announces record AED 30.98 bln revenue

    Dubai Electricity and Water Authority (DEWA) recorded consolidated full year revenue, for 2024, of AED 30.98 billion, EBITDA of AED 15.70 billion and net profit after tax of AED 7.24 billion.

  • Aviation sector contributes $4.1 trillion to global economy

    The UAE's Minister of Economy and Chairman of the General Civil Aviation Authority (GCAA), on Monday emphasised the aviation sector's critical role in the global economy, noting that it accounts for 12 to 13 per cent of GDP in some countries and supports millions of jobs worldwide.

  • Paris AI summit draws world leaders

    World leaders and technology executives are convening in Paris on Monday to discuss how to safely embrace artificial intelligence at a time of mounting resistance to red tape that businesses say stifles innovation.

  • 16% growth in new economic licences in Abu Dhabi during 2024

    The Abu Dhabi Registration and Licensing Authority (ADRA), which develops and regulates the business sector, on Monday revealed significant growth in business licences and compliance indicators in the Emirate's mainland and non-financial economic free zones during 2024.