The coffee chain needs to chop fixed operating costs till consumption within the sphere improves
Starbucks (Image: Reuters)
Tata Starbucks has requested landlords of its 185 shops for 3-months of rent waiver amid the countrywide lockdown to form out the unfold of coronavirus (COVID-19) pandemic.
As per a file by The Economic Times, the coffee chain despatched letters to the landlords for rent waiver. It needs to chop operating costs for the duration the put customer footfall is tormented by the pandemic.
Moneycontrol may maybe well maybe now not independently verify the file.
The letter expressed Tata Sons’ incapacity to “have rent and maintenance charges in light of the hot direct” and requested for a 3-month waiver starting March 1.
“The single plan to outlive this crisis is by drastically cutting again our fixed operating costs within the prompt term till the consumption within the sphere improves,” it acknowledged.
The company acknowledged that future phrases may maybe well maybe additionally be reassessed, reckoning on development, noting that it has already paid dues for March, and hence the quantity be adjusted in opposition to future responsibilities, acknowledged the file.
Tata Starbucks didn’t acknowledge to queries as per the file.
Consultants in actuality feel that if the landlords disagree, Tata Starbucks may maybe well maybe invoke the flexibility majeure clause, equivalent to how Speciality Restaurants, Contented Foodworks (Domino’s Pizza) and McDonald’s possess accomplished. Power majeure is when unforeseeable match(s), previous management of the appealing events, slay fulfilment of a contract.
The landlords, on the opposite hand, as per the file acknowledged that Starbucks’ rent settlement doesn’t provide for a waiver.
First Printed on Apr 7, 2020 09: 50 am