Due to “underperformance”, the Starbucks company has officially announced its shutdown of hundreds of locations. Disclosed on Sept. 25, the locations include multiple in Los Angeles, San Francisco, San Diego, one in Redlands, more across America, and many across Canada.
Following the tragedies in Palestine, many Americans took action by boycotting and taking their business elsewhere after seeing signs of involvement from Starbucks. Boycotts also began around October of 2023 due to the oversight of the employees, evinced through bad treatment, neglectful scheduling, etc. Backlash grew as the corporation was not taking its unions seriously.
The results of these boycotts are serious and can be impossible to go unnoticed. “In the U.S., Starbucks lost over $11 billion in market value in late 2023,” according to The Cradle.
These boycotts are still ongoing for many passionate Americans. This continuous avoidance of the store has shown ongoing effects. Starbucks has suffered “six quarters of falling sales,” which has pushed the company to close many stores across America.
This closure has already led to the elimination of 1100 corporate positions, 900 “non-retail roles”, and is set to “close many open or vacant positions.”
With this cut to about one percent of the store locations in North America, the Starbucks CEO, Brian Niccol, has reported their plan to “uplift” about one thousand other stores within the next year.
What Niccol did not mention, however, was the amount of unionizing that has taken place due to the treacherous working conditions.
According to The Guardian, “more than 650” United States Starbucks locations have assembled a union, “with workers pushing for a first union contract”. These efforts were not carried through when Niccol assumed the CEO position in September of last year.
This triggered strikes across America.
One Starbucks union, Starbucks Workers United, explained that the shutdown of hundreds of stores and revocation of hundreds of jobs “makes it clear things are only going backwards” for Starbucks.
Another pattern to be observed is the emergence of commercials and advertisements for Starbucks.
There have been a couple of new ad campaigns that suggest a shift from what the brand has created for itself– a way to separate from the reputation it has assumed.
For example, the “Hello, again” ad campaign from March of this year was run seemingly to reintroduce themselves as a welcoming community. This campaign brought the beloved writing on the cups, which surprised customers with an uplifting or comedic phrase or quote, encouraging good and friendly opinions surrounding the chain.
Another new feature of Starbucks is the push to “stay awhile,” which is the name of the new free refill policy. This intense rebranding also brought “cozier” seating options in an effort to bring back a community aspect to the neighborhood coffeehouse. Up to one thousand Starbucks locations are set to be remodeled this year, with the budget from the closing of the other stores, and are to be serving “for here” coffee in mugs and have other ceramicware.
This increase in “friendly” experiences almost contrasts with another new policy of theirs: to start charging for every extra drink topping. This lax vibe brought with the warm, welcoming local shop becomes stricter as adding cold foam is an extra dollar and 25 cents, scoops of powder will be an extra dollar, inclusions will be 50 cents, and syrups and sauces will be an extra dollar.
So, although Starbucks has been focusing on improving the homemade feel, seasonal editions, and making a trip to the shop an experience of loyalty, this chain seems to be taking these steps to bring back the supporters and consumers it had lost through the midst of the boycotts and strikes.
Los Osos’ most beloved pre-first-period stop is, and will be, facing lots of changing policies and features, including a new ambience, higher prices, and fewer stores.
