Starbucks and hotpot chain Haidilao close mainland China stores in response to Wuhan coronavirus outbreak

Starbucks said on Wednesday it would close more than half of its stores in China, and hotpot chain Haidilao International Holding said it would temporarily close all of its locations in the mainland as the deadly Wuhan coronavirus worsened.

China is the Seattle-based coffee chain’s largest market outside the United States and has been seen as a major area of growth in its international business by Starbucks chief executive Kevin Johnson. Starbucks had 4,292 stores in China at the end of 2019.

The company said it expected the closures to be temporary, but did not give a timetable for when it would reopen stores. It said it would monitor and modify operating hours for all of its outlets in the mainland in response to the viral outbreak.

Starbucks said it could not estimate the duration of the disruption or how it would reduce customer traffic, but expected the outbreak would “materially affect” its financial results for the second quarter and the full year.

“As events unfold, we will be transparent with all stakeholders in communicating how we are responding to these extraordinary circumstances and the implications for our near-term business results,” Johnson said. “We remain optimistic and committed to the long-term opportunity in China.”