Landlords fight with Starbucks over store closures

Some landlords contend Starbucks is paying rent late or darkening stores before specifying the closure dates to make the landlords wary of a fight and to pressure them into letting the company out of leases for a price they deem too low. Starbucks says that, in general, it is in compliance with its lease obligations and not aware of locations where it is behind on rent. || Read "Starbucks leases in dispute" (Wall Street Journal)

Comments

[jabanga]

"Our No. 1 objective is to maximize shareholder value."

funny that when that wasn't the objective we succeeded at doing so and now that it is the "no. 1 objective" the stock is in the toilet.

[sneaky]

I guess the communications department forgot to tell Mr. Michael Malanga that the #1 objective was something about uncompromising principles and a great work environment with respect and dignity. Or were the Mission Statement and the Guiding Principles laid off in July as well. . . ?

[Sense]

Why delete my comments Jim? Are you the only one allowed to be critical here?

For sneaky & jabanga..... he was referring specifically to the closures, not SD in general. Of course, if you already have an axe to grind, nothing anyone with *$ says will matter to you so what's the point.

enjoy until deleted............

[Charlie B]

sneaky - you confuse objectives and methods. The #1 objective of any corporation is shareholder value just as the #1 objective of any home owner is to maintain and enhance the value of their home. Mission Statements and Guiding Principles are the methods SB uses to enhance shareholder value.

[Darleen]

"Our No. 1 objective is to maximize shareholder value."

Sorry, but that was the first thing to pop out at me too. Although I do agree they need to get their stock out of the toilet, the way it's written just looks bad. Plus, their number 1 priority should be getting their partners back on safe footing.Of course shareholders are important! No doubt there. However, in business, your people should always come first. I can only imagine the welcome Louisiana will be giving starbucks when they show up for LC. What with two or three litigations going on in that state alone. What a mess.....

[Pat Nerr]

It's too bad nobody told Howie that his strategy of "growing the company as fast as we can" also results in a company that won't be around when the chips are down.

In retrospect, Starbucks should never have gotten on the Wall Street treadmill. It appears to be their demise

[Yvette]

SERIOUSLY?!?! I'm reading Starbucks Gossip and look to the right, at the sponsored ads, and what do I see..."Yes on 8: Protect Marriage." I haven't even had my first cup of coffee and I've already been offended. How about a big "NO ON 8!" shout to all the California voters?

[Alex]

Yvette- Amen! NO ON 8! If you don't like gay marriage, don't have one.

Webmaster Jim, I realize you may or may not have any control over the ads, and I don't know what, if any, personal feelings you have on the subject- but if you have the ability/inclination, can you pull that one? Seriously.

[STARBUCKS GOSSIP WEBMASTER]

I don't have control of ads, but I don't see any gay marriage-related ads being displayed.

[Sense]

Remember all, this is a profit generating enterprise not a display of altruism. Even if he could control the ads, why would he?

[jabanga]

here's my ad: use mozilla with the ad-block-plus plug-in and you won't have to see the ads. its the only way i can tolerate myspace.

[Pat Nerr]

Good lord... I'm offended that anybody that surfs the web is offended in the least by any ad aimed at offering equality to people and their life... If it were a fundamentalist Christian ad promoting PRO life we wouldn't be wasting this thread with such nonsense. Go to church and repent for Chrissakes!

[Nerfebarista]

Yea,

Yea, I come to this site to read either Starbucks news or people bitching at each other about Starbucks news. Who cares about the ads? IF you get offended about anything you see on the web, it's probably best that you don't surf anymore. =)

[Jiggaboo]

I'm in a store that is closing. We have no closing date...yet. Today corporate came to our store taking pictures and inventorying our equipment. Yet, we have no closing date. Anyone have any insight on this? Anyone closed a store yet? I just wish we had a timeline.

[SSC Hasbeen]

Nice quote by Mr. Malanga. In case you've not met the gentleman, be aware he is a boot-licking bureaucrat with no clue about what made the company a success in the first place. In other words, typical of the "leaders" that have survived the bloodbath of the last 10 months.

"Yes, Howard! Brilliant idea, Howard! What a visionary you are, Howard! Let's all travel to New Orleans and celebrate how brilliant we are, Howard!"

[Jim C]

Remember, "Starbucks is a lifestyle company" is what Howard once famously said. It is time for him to resign, a shareholder revolt should be in the works.

Vivannnno sales are crashing.

Ethos bottled water is a joke.

Quaker Oatmeal with a long shelf life looks good on the balance sheet.

Instant Coffee is the next "big play"

New store labor schedules that are going to launch some 'part-timers' below the 20-hour work week marker for heathcare and options.

If you worked for McDonald's right now, you would be serving Fair-Trade certified Green Mountain coffee, and you would be making 11.00/hr, have healthcare, and stock worth over 50 Dollars a share...

The "return" of Howard, Arthur, Harry, Curly and Moe did not turn the company around, it went from $22 (when the mighty HS returned) to $11 and lower today...

Shareholder revolt time... Howard needs to retire to the Hamptons.

[givemeabreak]

There was a time when landlords lured future tenants to their "strip-centers" with high rents, because there was a Starbucks (as an "anchor"). Falsely guaranteeing traffic to the center. In many cases Starbucks were given favorable concessions on their leases in return. Starbucks used this to bully many landlords. With Starbucks' mass closings leaves MANY landlords, not only with a vacancy but in conflict with other tenants. This has been a wake-up call for everyone. Starbucks is NO longer the "A" tenant of yesteryear.

[Cut Out The Heart]

And to think, Rogerthebarista busted my chops for being so negative. Compared to Jim C. and occassionally Pat Nerr (who by the way is pretty spot on most of the time) make me look like a Starbucks groupie.

So with that said, I think Mr. Schultz, your ideas are no longer visionary, your rhetoric is tired, your ego is too big, and nobody on your team is willing to tell the Emporer he has no clothes. Do your legacy a favor and leave now. I will say it again, don't be that over the hill athlete that doesn't know when to retire, your partners deserve better then what you are providing.

I know of one store manager , of a closing store, who personally renogotiated rent price down to a price that would make the store profitable with the landlord and was still ignored my corporate!!