WSJ story: "Anxiety grows around Starbucks closings"

That's the headline on Wednesday's (July 9) Wall Street Journal story, which is subscription-only. It says:

Baristas say they field questions daily [about the closings] ...Starbucks says all store employees will get the official word by the middle of this month. The company has already notified 50 stores that will close by July 31, and will make that list public by July 15. The company has a list of the others slated to close but it won't identify those locations publicly until the actual closing date. "We want to do this respectfully," Starbucks spokeswoman Wanda Herndon says.

We want to do this "respectfully" -- we want to keep customers (and employees) in the dark about the fate of their favorite Starbucks for as long as possible.

Comments

[Steve Crane]

I guess the good news and the bad news is that Starbucks doesn't have a whole lot of experience with downsizing. It is always more "respectful" to deliver bad news as soon as it is known. Leaving partners and customers in limbo is very disrespectful.

[Boring Market]

Starbucks has put its partners in a very difficult situation by having to field questions on store closures almost everyday. A barista is the face of the company, but shouldn't be subjected to becoming a PR representative. The subject matter isn't one to be taken lightly, for some partners a store closure is their job. I understand its better not to release it to the press right away, instead to tell the stores first. I think Starbucks is doing the right thing, by releasing the stores AFTER they tell the stores.

[SEADAVE]

MSNBC AP: Starbucks looks for some love in the afternoon

I don't want to seem ungrateful about Starbucks attempting promotions that cut customers' costs. I think that's a smart move during these tough economic times. However, once again I am perplexed by the vague and ambiguous message regarding this promotion.

The promotions vary by region and timing. Starbucks would not say how many stores are planning promotions, only that the majority of its more than 11,000 U.S. stores will offer some sort of deal between now and early September.

Again, it seems like Starbucks corporate is confused and unsure of what they are attempting to do here. As an investor I am not impressed by what appears to be a lack of clarity in the messages and direction coming from Starbucks.

[Will]

I have a better idea, Jim, let stores know months in advance so that employees can quit and starbucks can scramble to staff its stores.

[sbuxhassoldout]

It makes sense to let partners have anxiety. The more anxiety the greater chance a partner will go find a job, instead of wait to hear their fate. The result of that being that the company doesn't have to pay severance and didn't get their hands dirty losing a partner. It's a pretty basic move. If all the info. were in front of us to be looked at, we'd have a much better idea of what the future holds for us and we might put together a time line to get our severance ( which is a complete f****n' slap in the face) and have a new job waiting thereafter. But no, this way we get scared and bolt on our own.

[devastated]

DEAR HOWARD,
i'm a partner and I gotta say, when you love your job as much as i do and are hearing horror stories of stores closing all around you, with no clue as to the fate of your own store, it's really hard to go to work and still deliver legendary service.
i understand and support the closings but just tell me what's gonna happen at MY store. i don't need your "face to face" PR bullcrap, just tell me if we are staying open or closing. it's all just so DRAMATIC, everyone waiting on bated breath for the next little TRANSFORMATION AGENDA to tell us what kind of coffee your currently enjoying and what "direction" you plan on taking the company.
I've got some direction for you. PLEASE STOP WITH ALL THE EMOTIONAL BS.
It's nauseating and hard to respect you as a leader. I understand you are emotionally invested in the company and that it's your baby. but this is not a game, you've got deeply committed and passionate partners whose lives have been put on hold for the last 9 days while you and some of our other partners decide our fates. I've gotta be honest i've lost some of my respect and admiration for you as a leader, and it kills me because i was one of your biggest admirers. please consider a different approach from now on with how you handle things of this nature, just think of me, individually instead of that number, 12,000 as a whole.
i am doing what you asked and taught. i love my job and try every day to go to work and deliver legendary service with a smile, i am passionate, i connect, i engage. i am involved, genuine, considerate, welcoming and knowledgeable. I am kind and respectful, i recognize my strengths and am constantly working on my opportunities
please pay it forward.
Thank you,
you loyal barista

[brian bauer #1182341]

DITTO!

WOW! What a great post!

However, i do understand that "emotional BS" pairs quite well with banana smoothies and frozen lemonade!

Seriously, the emotional "heartfelt" nonsense is extreme...and extremely insulting at that!

I was more than happy to fill out my partner survey this morning -just after updating my resume!

-BB

[Bob]

"I have a better idea, Jim, let stores know months in advance so that employees can quit and starbucks can scramble to staff its stores."

Ahh, it's always a good thing to support the multi-billion-dollar corporation over the guy making barely above minimum wage. I hope you like your little pocket in hell when you get down there.

And those asking Howard to "pay it forward": you've actually bought into all that hippie crap he's selling? He's interested in money, primarily his own. He doesn't have an altruistic bone in his body, much less a backbone.

[tiredof this]

howard,
i would like to ask you a simple question?
how in god's name do you expect partners to respect you or this company after this nonsense? I've been a partner for two years and have tried my best to apply myself to the fullest each and everyday. I'm done howard. I'm over the "partners I'm so excited over some bullshit drink......." You know whats even more exciting?! Not knowing if you'll have a job in a week or two weeks or three weeks. I have yet another AMAZING idea stop bathing in emotional beverage bull and show us as partners if your even capable of leading this company.

[Kari]

God I hope Mr. Howard reads this post! I love it!! As the previous poster said, I am passionate about my job, my customers and my fellow partners. I do my best to "enrich people's daily lives"...but how am I supposed to be passionate about a company that cannot be passionate about their partners? And for those of you who say they are "respecting" us and treating us with "dignity" over the past 9 days please tell me how?? That's a load of crap, because all they care about is the bottom line and making our jobs more labor intensive without actually increasing our pay (but I won't go into that because that's a whole different story). Some of you may say.."Well you don't like it so leave the company." I'm sorry but as a 5-year partner I firmly believe that partners have the right and responsibilty to question our leadership especially when we believe they are taking the ship in the wrong direction. Your baristas/Shifts/SM/ASM's are the face of Starbucks and as much as I may agree with their decision to close the stores I wholeheartedly disagree with how they decided to handle the mess...oh wait, we're the ones left to pick up the pieces. They still have jobs, but I don't know if I will.
Public/Media Relations 101: Control the message. So sad...So sad....

[bichywon]

Wow. Really guys? I am a six year partner and I think this is the smartest move the company has made in a long time. Most of us knew this is what needed to happen and for one, I'm relieved. I also think that continuing to look toward our future profitability by developing new drinks that meet not only customers livestyles but also thier requests is imperative. However, the most disturbing thing is that sooo many of you seem to be feeling left in the dark. It's really not a huge mystery. Your managers should be able to determine whether or not your store has a possibility of being on the chopping block. If not, they need to work on thier business accumen. Also, if you are the dedicated and knowledgeable baristas you claim to be, you really shouldn't worry so much about losing your job, they will do thier best to place you. And you only don't know yet because it has to trickle through the line and your superiors have to consider a plan before they drop the bomb. Be legendary, both in and out of work. I support the major corporation, the one I work for, the one that pays me a fair wage, the one that has provided me with benefits and health care and the one that I have invested in.

[seven]

If it was me I'd want to hear it from my SM and my DM. I wouldn't want to log onto this site and read it. I guess I'm lucky, no stores in my Region are closing.

I do have to mention, I've come on this site many times and read people talking about how bad NYC Starbucks were and how we are dragging down the rest of the company. I guess we must be doing something right, cause we are staying open. Hmm.

[really confused]

Well, I as well as the rest of you have had nine days to mull over the news. Since the first of July my heart has been heavier. I have become extremely absorbed in the whole closing issue. I still do not know the fate of my store, but I have come to terms that the closing of my store is a very real possibility. No matter what happens to my store the sun will still rise. It is not the end of the world.

Until the first of this month people would look at me with almost a jealous look in their eye when they found out I worked for Starbucks. Wow, how cool, they would say. Do you get free coffee?! Today they look at me with a bit of sympathy. And that is sad. Things happen. And as great as Starbucks is, it is not immune to economic problems or mistakes. There is no way to handle this so everyone is happy. I believe they are doing the best they can.

No matter what happens, when I close my eyes and say my prayers I will thank God that I have had the opportunity to make a real difference in the lives of the people I connect with at the drive through window and in the cafe. I may not know their name, and they may not know mine, and they may be just passing through, but until they tell me not to come back I will continue to do my best to make people smile at 6 AM on what has started out to be a bad day or at 10PM of a bad day.

[xsbuxdm]

"...if you are the dedicated and knowledgeable baristas you claim to be, you really shouldn't worry so much about losing your job, they will do thier best to place you." - I completely agree with that statement, unless you are in a very remote market. Unfortunately, there probably are a few of those on the chopping block. As a result some really good partners will lose their jobs because there is just nowhere for them to go.

I'm sure there is a a bit of "behind" the scenes manpower planning going on -hence some management not being particularly forthcoming about what is going on, although they probably know. If I was a partner on an action plan, particularly SS and up, I would be VERY concerned right now.

[finished]

we're closing, it's official. no more Losey and Denton.
just got home from the meeting.
:[

[bichywon]

I'm in a remote market.
My neighboring store is closing.
Good partners are getting the opportunity to transfer to the next closest stores (mine and one that's 15 miles away)
Underperforming baristas and shifts are being given a severance package that the company does not legally have to offer... they are doing it because they really are trying to do right by thier partners.
Quit whining and do your job.
I understand that not all stores are this fortunate when it comes to closing, but 95% of them are. For those that have not been so fortunate, I feel for you.

[finished]

Bichywon, I wasn't attempting a whine, I was simply stating a fact with a sad face. The DM and RM both were at our store with a PR representative and said there will be an attempt to place us at the one other store in our area (the only one, we are remote too). If we are willing to move, the possibilities are greater.

I am two years into this...I'll do my job until the doors hit me in the ass.

[CorporatePartner]

If anyone with the inside scoop on the SSC and field corporate layoffs is reading this, we are DYING to know when we'll hear the news..Pat Nerr, can't you call your old friends and find out when the corporate layoff news will hit? Howard's letter said we should know by August 1st, but each day is putting more and more fear into the minds of some great partners...I wish they would just get it over with!!

[longtime partner]

The baristas are only getting a 2 weeks of severance pay. I think that is a slap in the face. Better than nothing? For a job that attracts good people by offering health benefits, 2 weeks is nothing. It is embarrassing.

[Redd]

I understand the partners who are feeling anxiety over this (I had a day of that anxiety before I found out we weren't closing)...but the CUSTOMERS? Seriously? There are customers who have ANXIETY over their Starbucks closing? I've had favorite stores/restaraunts close around me all my life, and I thought 'Oh no!' but then I found a new favorite....

[Pat Nerr]

Word is that it is coming soon... like next 2 weeks. Since it's easier to find a job when you have a job, you should have been looking starting a month ago so you could ask to be laid off and thus receive your severance... and bank of vacation.

200+ SSC partners... and soon partners will be moving out of REDO as SBUX is already trying to offload that place onto another business...

summary... get a new job, ask to be laid off... start being happier in your life.

[Razzle Dazzle]

Pat, If you were such an insider, you would know you don't get vacation time upon exit or termination at the SSC.

[Pat Nerr]

getting laid off allows you to get your vacay... getting fired does not. If you give notice, make sure you use your vacation bank at least 3 weeks prior to giving your 2 weeks notice...

When you quit you also get 90 days to exercise your worthless options...

[CorporatePartner]

we've already been told that there is no option for voluntary severence- so we either wait it out, or leave before they can get us (and give up severence and vacation payouts)....and trust me, there has been plenty of resume sending and interviews already in motion- I wouldn't be that lame...

are you pretty sure that the 200 number is what they're targeting? I've heard everything from "a handful" to 1000 corporate employees-

Any news whether the cuts will be more SSC or field?

[Trent]

I know this is completely off-topic, but I didnt know where else to put it where t would get viewed.

Anyone have their partner perks card on hand? I lost mine and am trying to ge the AT&T discount

[Pat Nerr]

SSC layoffs and the last number as of a week ago that I heard was 200+... I've heard nothing of field support layoffs as of yet.

I hate to say it but screw before getting screwed... That place is toxic as you probably already know... Take care of yourself first... and keep your partner card as a souvenir...

[Anxiously Waiting]

actually, baristas only get 1 week of severance pay. SS 2 weeks.

[Hmm]

Seven mentioned that NYC can't be doing too bad if most of the stores are staying open. Well, with the density of everyday population of NYC between commuters, residents, and tourists, a monkey could probably run a store that makes money. This isn't to say that NYC managers are bad, but more to say I don't think sales numbers are a great indicator of the actual quality of product. Most everyone who visits NYC comments on the lack of legendary here.

Too often in NYC we hear about how we do things "the NYC metro way" when someone points out that we are doing something that isn't up to standard. If we were to only close down stores that were well run, I think a lot of NYC SBUX would close. Unfortunately, life isn't merit based and NYC is too high traffic to really get hurt in the short run.

[Rebecca]

Well I am simply going to work believing that my store will stay open. But I have two other jobs already just in case.

[Tangalang]

It's sad that my store is closing. I know I'll get offered a position because I live farely close to other Starbucks. Not my other partners, though. We're the only store in a 40 mile radius, and I'm pretty sure none of them want to drive that far..

sad day.

[msamethyst1]

Finished
Sorry to hear a LaCrosse SBX is closing. Have never been to your store as there were no SBX when I was a student at Viterbo a loooooong time ago. LaCrosse holds a special place in my heart though. It was always the warm honey wheats from Mr. Ds at bar time... sigh

A SBX customer waiting to hear the fate of her 2 favorite Madison stores and the one with the barista with the wheezy laugh :/

[ollie]

I've heard too, that the SSC layoffs will be closer to 20%. However, my information is 3rd or maybe even 4th hand.

[jkh]

WHAT IS THE BIG DEAL?

Stores close at any time. Starbucks has no obligation to do anything but say you're fired.

Stop whining and grow up!

[jocelyn]

I don't understand the argument between keeping everyone in the dark about which stores are closing versus "let[ting] stores know months in advance so that employees can quit and starbucks can scramble to staff its stores," as if those are your only 2 choices. I mean, if all the employees quit and the store is closing, wouldn't you just close it earlier? Why bother restaffing it?

The fundamental problem: Why bother announcing to the world that stores are closing so far in advance of naming them? What was the point of that? Was it for a few weeks of cheap buzz? Was it the company's hope that customers would ramp up their Starbucks consumption in an effort to save their local store from the chopping block? That employees would have a little fear-of-poverty put in them to improve performance (what a motivating rush of relief to find out your store is staying open! Oh boy!)

I don't get it. The list and the announcement should have been released together far enough in advance for employees to prepare (whatever the amount of notice employees are asked to give when quitting) but not so far in advance that prolonged the suffering that is working a job you know is coming to an end.

[logjam]

It has always been the partners who pay for management's mistakes. If a partner voices an honest opinion contrary to management a call comes down through the manager that the partner hsas displayed disloyalty and should be careful. Now, with the store closings and 12,000 layoffs iminent management says all will be offered employment or severence packages.
How generous or even fair can the severence package be for an employee be who makes $8.00 an hour. Good luck with those cobra payments.
That said, I think the store claosings are the right if painful action to take.But it should not dismiss Starbucks abandoment of their core business over the last three years.

[Dave]

For the love of god, Jim, stop being so passive-aggressively sarcastic about the store closings. Stores close; that's life. Nothing lasts forever. But Starbucks is doing absolutely the right thing and telling the stores and partners first, who can then inform their customers, before telling the world.

[SoCalRocks!]

jocelyn- my take on this could be to hardball some of the landlords into renegotiating leases. As many have stated, the recent stores were poorly negotiated, and are costing double and triple what some of the original stores are operating under (plus many newer stores have much shorter leases than older stores) Providing this much advanced notice gives us power to hopefully renegotiate some of the leases. That is also why stores that are being told "you are closing, but you'll only know 30 days in advance) it buys more time to make this all happen.

Its pure speculation, but I could see it being an approach that could work to our advantage.

[jocelyn]

thank you socalrocks; that actually makes sense

[longtime barista]

i thought logjam was on the money.he didnt say anything i havent seen for myself. i also think it woul be agood time for a stock buy back to bolster prices and ward off corporate raiders.
the rule of the day at corporate sbux is cya.

[VLatte]

I am sorry that many of you are stressed out and worried about whether your store will close or not. I was wondering if you'll be able to collect unemployment? I know it's not much, but it can help while looking for another job. Take care.

[truth]

A hardball approach to renegotiate leases?

Might be plausible, until you consider that they just laid off the entire store development team last month, who I'd assume would be the natural choice to do such a re-negotiation.

[StLouieDrip]

Playing hardball? Renegotiating the leases could also mean it puts sbux on the same playing field as other potential tenants. Instead of paying 2-3 times the market value they just pay the same as what others would pay. And that could mean they'd no longer get any special treatment from the landlords, no priority consideration, and no special exclusivity rights. And then other coffee vendors might get the same shot at leasing the property.

Yeah, I like that too.

And laying off those who actually cost the company so much extra money, and so much unnecessary and reckless spending, that seems reasonable too.

[sbuxSS]

My store is closing, and I was nothing short of devstated when we got the news.

Now a week later, my devestation and greif have turned into anger and frustration. They told us that we will be closing our doors anywhere between "tomorrow and six months from now". Ok, I can handle a little obscurity like this. Then they said, cut your hours back as much as possible...so we went from closing at 10PM to 6PM. I am a single new mother and my availability starts at 5PM, my entire schedule for that week was cut by two thirds! And what does my SM say to me, leave as early as possible to cut on labor...on no she didn't.

Do these people even care about us! My manager doen't want me to transfer until we close because I an the most experienced SS in the district and she would be lost without me, but I don't know how long I can continue on barely 20hours a week raising a new baby. This company is only looking at the bottom line here, and not the situations of the Partners. Who cares if all the partners get their hours cut for an unknown amount of time...Howard certainly doesn't.

I will continue to work hard for and give my full support to this company, making it the best it can be, but know that I will always have a sense of disappointment knowing that the principals we worked so hard to uphold have been ignored. They need to realize realize that they are not only closing a store, but are closing the trust in those guiding principals and the integrity of this company.