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Starbucks: Store Closings and Community Rallies

In a troubled economy, Starbucks is intending to close nearly six hundred stores in the United States. This company plan became more of a reality when, on July 17th, Starbucks provided a list of the U.S. store closure locations:

link: Starbucks Store Closure - press release

Some states will see a drastic discontinuation in their communities. For example, Mississippi will have over forty percent of the state’s Starbucks locations closed. In a curious reversal, there are online petitions and community rallies to “Save Our Starbucks”. Previously, Starbucks had faced protests in communities where there was opposition to the coffee conglomerate opening stores. Among the concerns was that Starbucks would dominate the small coffee outlets and communities would lose its own unique identity.

Now there are movements to keep these Starbucks locations open. Local business anticipate that having a Starbucks store close would have a negative financial impact. There would be less people traffic to these areas and that would translate into a decline in revenue. Communities are recognizing that Starbucks adds to the commercial value of a property. It also means that there are local jobs being lost.

Starbucks is caught in a tenuous position. The company must act to protect its corporate revenue. The economy is straining people’s budgets. However, customers of the brand are appealing to Starbucks to reconsider. If these community rallies grow in number, Starbucks must recognize the potential possibility of a public relations nightmare.

Catherine Forsythe

3 Comments

One of the stores in the district I am in is closing… the only one closing in New Hampshire. I hope all the partners there have the opportunity to easily transfer to neighboring stores.

We are losing our only Starbucks. Tahlequah is a small university town in northeastern Oklahoma. Not only that, but the only Starbucks in Muskogee, 22 miles away, is also closing. That means that the closest Starbucks for this area will be sixty miles away in Tulsa.

The partners herre basically have nowhere to go, but a couple of them have talked about opening their own coffee shop along the lines of Starbucks if they can get the financing. So we’ll see.

This may not have been the case in some of the larger metropolitan areas, but here the Starbucks had indeed become a gathering place, sort of a community center, for friends to get together to drink coffee, to shoot the breeze, whatever. I wonder if that happens as much in the big-city Starbucks?

[…] was once making news by its store openings and global expansion. Now, it is the reverse. In Australia, Starbucks will be making a strategic […]

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