Here are the areas hit hardest by Starbucks closings

Regionally, the South and Great Plains are worst off. Louisiana, Oklahoma, Mississippi, Arkansas, and Alabama are all losing more than 10% of their Starbucks. Iowa, North Dakota, and Nebraska are hurting in the Plains.  Of the bigger cities, Baton Rouge is the worst hit with nine out of 12 stores  folding. Mobile, Ala., and Las Vegas are the next two big cities to be hit hardest. (Read more at Slate.com)

Comments

[MNPLS,MN Baristar]

I noticed that while reading the list. Of all the stores closing in MN I've been to 1! I'm sure it has something to do with demographics. Not to stereotype but farmers and the clampits aren't know for their starbucks addictions.

[Jim C]

The stores that are closing in MN have nothing to do with demographics and everything to do with competition - It is the home of Caribou Coffee. Some of the largest amounts of Starbucks store closings are a way of admitting defeat in certain markets:

Upper Midwest = Caribou Coffee
San Francisco = Peet's Coffee & Tea
Mid-Atlantic = Dunkin' Doughnuts

They are sticking to their knitting.
Some of the closings are because of demographics, but not these areas of the country. It is retreat instead of retrench for SBUX.

boo-ya.

[bichywon]

funny, all the caribou's in my area closed a while ago. we only have 1 dunkin donuts left. we have 6 starbucks after the one closing. i guess everyone has to retreat from time to time.

[closed stores]

I have to laugh at SLATE'S numbers...they include ALL stores - which include Target's, Airports, Groceries.

I agree stores in Baton Rouge, Oklahoma, and Minnesota are taking the hardest hit.

In my area, the Barnies conversions are taking the hardest hit; which bothers me. Barnies was okay, but they were a place for coffee. Now, Starbucks is closing more than 1/2 of their locations they opened 18 months ago. And, in the locations I would frequent during family visits.. Sarasota Square, Countryside, and University Square..

Makes me wonder if the purchase was worth it financially?

[THANKSALATTE]

In MN, IMO, a great majority of the closings have to do with bad real estate decisions. Many of the stores closing have been paying ridiculous rent amounts every month.

[truth]

This is hilarious.

The media is using you in order to gain readers and clicks. It's a tempest in a teapot. Do you think SLATE really cares about your store?

They are NEVER gonna 'save' those stores.

That said, this is a nightmare scenario unfolding for sbux corporate. But they brought it on themselves. Their PR on this whole matter is SO BAD.

Here's a free one: Issue a press release saying "we are flattered at the outpouring of support to our company, the stores and the partners, but our analysis and economic models show that these stores are not viable long-term. The decision to close these stores, while certainly excruciating to make, is a well-considered and is not subject to change."

Otherwise, this just gets bigger.

[P.R.I.D.E.]

I have to disagree on your point of this being a nightmare scenario. As many articles have pointed out, back in the day, hearing that Starbucks is coming to town brought the wrath of certain communities, with petitions to STOP us from opening, and it is now the independents who are scratching their heads, wondering why their communities are up in arms about losing their starbucks.

I think it would have been a nightmare scenario if no one cared, and moved on, but from the looks of saveourstarbucks.com and the handful of petitions they have already, it kinda feels like a dream come true. Our customers are speaking up, and they're going to miss us. They are confirming that we serve more of a purpose than a transactional place to get coffee. I hope it gets bigger and louder and these landlords decide to give in and work with Starbucks to renegotiate leases. Its pure speculation, but I think its too soon to say that all 600 are a done deal. I think a few of them might just turn around. Not a lot of them, but maybe a few of them, for the sake of community victory.

[MNPLS,MN Baristar]

I do agree that the MN ones have very porr retail choices. Plus i don't think enough research went into the locale of these stores. Some are in the middle of nowhere and some are in some sketchy parts of town. Not places where i see successful starbucks in terms of profit or a comfortable 3rd place.

And on the subject of caribou, it caters to a different audience here in MN. And its not really an upper midwest thing. Its a MN thing. Except for a smattering of stores in GA IL and WI its almost all in MN (including its base of operations)

[MNPLS,MN Baristar]

Plus there are a bunch of caribous in the middle east which were subsudized by a middle eastern company with ties to hammas and other "polictical groups" IE terrorists that want the destruction of Israel. One of the many reasons i have not and will not ever go to one.

[Christin]

I'm tired of these articles claiming 12,000 people will loose their job! Where are they getting these numbers? The average store in my area has about 17 partners, but slower stores like mine (and the ones that are closing) have around 12 partners. Of the stores closing here, the vast majority of them are being placed in other stores unless they choose to leave the company. So even if you do figure that each store has 20 partners, there is no way 100% of them are losing their job.

[formershift]

PRIDE,

Good luck with that. Possibly a couple might be spared, although imagine the ruckus if one gets spared while the others get the axe. Customers won't like that. Preferential treatment and all, you know. It does show that Starbucks as a brand has become iconic in the public's consciousness, though.

Anyway, unless a number cruncher in the SSC volunteers to come forward on this site and state the reasons for whatever closings, the lay public will never really know the rationale behind the closings.

[truth]

The copied me almost word-for-word.

No charge, sbux. No charge.

http://seattlepi.nwsource.com/business/371671_starbucks22.html

[truth]

s/b "They copied".

Maybe I should go buy a lottery ticket or something. This is creepy.

[Pat Nerr]

Here's the "funny" in all of this worrying about store closures... There is a 25% reduction of staff going on right now at the SSC... check out Starbucks Jobs site... when is the last time you've seen no less than 80 jobs posted right now... a record no doubt and mostly store manager jobs. While you're all looking at Starbucks stores closing you're missing the key indicators of a company readying itself for a buyout... Here's a little scenario for you. Pepsi will be doing the honors by the end of the year...

They're just keeping the lights on right now... Has anyone even asked Uncle Howie point blank if Starbucks is readying for a buy out? For the media folk reading... ask him. Then ask him why there are so many former and current Pepsi folks represented in the Board of Directors... Stock will go to 10 bucks and the deal will be made... Shareholders win and guess where employees end up.

[frappucino?]

hmm... LCs included? Thats kinda lame.. its only company stores closing....

oh and they spelled frappuccino wrong too.

[P.R.I.D.E.]

Pat, you sure are a one-trick pony sometimes...here is a post from you dated 7/23/07 (almost exactly 1 year ago):

I hate to say I told you so on the price increase and outsourcing of HR... Let's see if the Pepsi buy out comes true...

Get your pullin' arms ready baristas... it's time for soda jerkin'

So, HR was never outsourced afterall, and the price increase came and went. Now, I'll grant that I've heard about the corporate cuts (25%) but could it possibly be that we are restructuring for the sake of reduction of operational cost?

I won't say that the Pepsi buyout wouldn't occur, but if anything I don't forsee store partners losing jobs. Corporate roles? Certainly, but the store partners would continue to work under the new structure, with different management.

I just wonder if there is a statue of limitations on your predictions. If it happens in 2012, does that mean you were "right"?

[Pat Nerr]

PRIDE... you better go ask your HR dept. They did outsource. Who answers your benefits questions? Who handles your training questions? Did you know they're tapping out a couple of temp services to handle the work of entire teams laid off? Do you know who handles your payroll questions now? Give them a buzz tomorrow... ask them. Now they won't outsource the generalist role, but all of your touch points are now managed by Hewitt.

2009 is the answer you're looking for... yes, the stores will have jobs, but will you want them anymore? Only time will tell and August will have some key announcements.

[P.R.I.D.E.]

1) Who answers my benefits questions? Well, I usually call the provider directly, but I don't see that as outsourcing...

2) Who answers my training questions? My local training partner, I think they're called training specialists. And also there is a training manager I can ask questions of. I don't know what you're refering to here as far as outsourcing training questions- can you be more specific?

3) What are the entire teams that will be laid off? Might as well spill the beans if you know about it, since it'll happen any day now, and of course you can have the bragging rights of "you heard it from me first"

4) Payroll questions- I've called my partner resources associate in my area for pay questions. I've also called the partner contact center for my hourly partners pay questions. Both are employed with Starbucks. Again, can you explain further?

5) You've failed to demonstrate why any of this will make me not want my job anymore. Can you articulate further?

I'm just asking for more detail, it looks like you know more than you let on, and inquiring minds would like to know.

[christina]

in my store, we have to listings right next to our schedule and I wasn't surprised at the amount of store closings in the new york city area. I mean, come on, it's new york. although, there were some that did close. I'm just happy I work at one of the busiest store in NYC.

as for the baristas that had lost their jobs, I feel sooooo bad for them. I couldn't show anymore sympathy as I already do. :/

[JTBassics]

When does the short list "the first 50" come out?

[scarred]

Funny how all the store closings are getting DM's to push out people they don't like to make room for more favored displaced partners. Especially in the soCal area.

[French Roast]

What do you mean by that, scarred?? Can they really just get rid of people they don't "like" right now? How can they get away with that? What can a person do to try to save their job before it's too late for them?

[xsbuxdm]

"Funny how all the store closings are getting DM's to push out people they don't like to make room for more favored displaced partners."

Partners on action plans in areas where there are store closings should absolutely be very concerned right now. If you are not meeting the terms of your plan: there will be someone to replace you. The 'bux will be able to use some store closings to clean up the management/partner pool. And that's not a bad thing, because in any district there is usually at least one manager that is struggling or just doesn't give a crap, and usually 2-3 baristas per store. DM's are on pins and needles in my former area as well: supposedily they will find out about their jobs August 1.

And as I have stated before on another thread, there will also be people that just decide it's time to move on from the 'bux and will make a change.

[French Roast]

I didn't even think that DM's might lose their job as well. Ouch. What area xsbuxdm, west, mid or east?

[Michael Bauser]

If you want to look at things at the city level, the Detroit, Michigan closings are interesting. Detroit's losing 3 of the 7 locations listed at Starbucks.com, but it looks like they're being left with only one stand-alone store. The other 3 survivors are in a casino, a hotel, and a university.

So, it appears that most Starbucks customers in Detroit are either college kids (the university location) or out-of-towners (the casino and hotel locations). Looks to me like Starbucks totally misjudged the demographics of Detroit. It's just not a specialty coffee kind of town yet. (Part of that is probably the economy, and part of it is age -- Detroiters skew old, because young people are moving out to the suburbs.)

You can't blame the competing chains, either. Detroit has 1 Dunkin Donuts, and no Caribou Coffee, Tim Hortons, or Biggby.

Maybe Starbucks can try again in Detroit when all those college kids grow up, assuming they don't do the smart thing and move to a state with a better economy.

[Jay]

I'm bummed. The Starbuck's in my hometown, Muskogee, Okla., is closing. And it opened only after Christmas 2007.

Business seemed good. It's hard to fathom.

[frappucino?]

JT, all 600 have been released now... link on starbucks.com

[SF SM]

um, peet's is not that threatening to stores in san francisco, at least not enough to force any store closures considering we only lost 2 stores out of 87. know your facts, sir.

[AJC]

I'm convinced that "save our starbucks" was created and fueled by starbucks workers and their friends and families. The starbuck closings are taking place in the less pretentious areas- where the majority of people could care less if you're walking around with a five dollar cup in your hand. Coffee is coffee- get a life!

[JTBassics]

Jay,

Thanks. That I knew. Howard released info stating they would inform the stores 50 @ a time w/ a 30 day notice prior to the actual closing. Not all 600 will close on the same day. I was looking for info to get the short list as it comes up. I understand it will be on the managers portal.

All help appreciated.

[catherine]

mpls,mn baristar: Do some research before you make stupid claims, mmmk? Caribou has locations in many, many more places than GA, IL and MN, and surprisingly, caters to the same demographic as Starbucks. They are owned by a corporation from the UAE that is not "linked to terrorism". It's sweet that you are trying to be a cool kid, but it's not really working out for you sweetie.

[Ringo]

My friends in Tahlequah, OK, are baffled as to why their store is closing. They say it's always busy.

[joss]

maybe it's the "bad leases" -the more you're paying in rent for a location, the more money a store would have to pull in to be worth it. Even a busy store could wind up "unsuccessful."

[joss]

of course, that's not as much fun as tempest-in-a-teacup speculation. I would rather ponder the possibility that just as Starbucks once carefully chose locations in neighborhoods they knew to be on the up-and-up, perhaps now they again know something more than the rest of us and are trying to be the first off the sinking ships that are these neighborhoods.

Or, people will interpret it that way, and follow suit, instigating local collapses that otherwise might not have happened, plummeting people's home values beyond any amount that could ever be refinanced until former retail locations are being turned into shelters and soup kitchens.

Just as good either way.

[maxpunx]

there's a store closing in my district and like... 8 in the state as a whole. arkansas like the other states that are being hit hardest by the closings is just not affluent enough of a state to support so many sbuxes i think.

[savinggrace]

You know, it just breaks my heart that all these people are so unhappy about all these store closings. I LOVE my Starbucks, and being in a new(er) market, I can see how the Dali Lama-ish "Starbucks" ideas of making the world a better place can really bring a city to life... The people in my city are in desparate need of some enlightenment...via a good barista, or a community event, so forth and so on... Just as I was beginning to see some interest in environmental issues and a much bigger embrace of diversity, our little city is closing the doors on 5 new stores. All of our displaced partners are being shuffled into the few stores that managed to survive the chop. These surviving stores were really just connecting with their customers, as before the newer stores opened, we were seriously over burdened with constant rushes, barely able to focus on the drink we were preparing, much less the customer. How do they mean to create the 3rd place environment when we are throwing drinks at these customers at lightning speed just to maintain the three to five minute time limit for all those customers that are lined up out the door or to the street in drive through at 7:30 am rush? What do you mean by " legendary service" and what is a "Starbucks experience". Our city residents are just now discovering that the crap they've been calling "coffee" all these years really tastes like moldy sour cream! The idea that we needed new locations to ease the pressure of these stores was fantastic! People in this city don't like waiting 12 minutes for a $5.00 drink. Really. And they are not so hooked that they can't give it up at will, especially given the price of gas. People are evaluating the extra expense of the "expensive coffee drinks" that the financial advisory bandwagon have started warning us of! So it would be a fairly easy decision after sitting 10+ minutes in a drive thru, in the 98 degree heat, late for work, and being rushed on through when FINALLY we reach the window... only to get down the street and discover that there's no vanilla in their caramel macchiatto!!

The person on bar is not stupid...just overwhelmed! The labor hours we are given do not allow for enough help to get us through it anyway...

Whatever!

The poison is in the koolaid.

Starbucks is going to kill it's established stores.

The Partner survey I took on the portal last week forgot to ask me what could have been done to prevent this from happening, or where they could have located the stores that closed so that they might have been successful...

So, here's the reason why so many new locations in Mobile, AL are closing...

the person in charge of store locations looked in the local phone book under "coffee shops" and put 3 of 5 new stores within 300 feet of the only locally owned coffee shops in Mobile!!
That was a good start... what a huge disappointment it was to find out the new stores were doomed from the start!

And they failed to ask any local partner, or DM, or chamber of commerce where a new location would benefit the community, customers, and stores alike...

It could have been so good... but someone in corporate starbucks land gave the most important job as per "growing our business" to the biggest idiot ever.

And I would love to have the names of that individual and the dumb ass that gave the job out in the first place. Do a little investigating and I bet you'll find that they were on the dean's list majoring in business sabotoge!

I really hate knowing that I am riding on the sinking ship. BUT, I love my job too much to quit!

What a sad day for poor little Mobile...
It's the perfect city to establish the Starbucks philosophy, and try to learn from past corporate misjudgements. But corporate is hung up on this suicide mission. What they really need to do is re-evaluate the decision makers...weed out all those BURNT BEANS and find a perfect blend with a little sense and a genuine love of coffee...

Any clues on the people we should be lynching? Does anyone feel like this too?