Operations

Can Starbucks get some rent money?

Provided

May 14, 2020

Starbucks Corp. is asking for a break in rent from landlords of its nearly 9,000 U.S. company-owned stores, according to Eater, which reported that the chain had sent a letter to landlords requesting a year's worth of rent forgiveness. In April, the chain said it suffered a 47% drop in earnings during its fiscal second quarter due to COVID-19.

The email said the rent break would be "to support modified operations and adjustments to lease terms and base rent structures, so we can withstand this uncertainty together," and Starbucks CFO Patrick Grismer confirmed the company is having conversations over "what may be commercially reasonable lease concessions in the current environment," according to Eater.

Starbucks said it was hoping to reopen about 90% of corporate-owned stores by next month.