Starbucks recently announced that it would be closing a small percentage of its stores. About 1% actually. In response, the stock notched up a bit. The goal: improve profitability. I had read that news with a reaction I have had often when companies announce they will be shrinking and letting people go: it’s one of the dumbest decisions that leaders make.
The capital invested to lease properties, buy equipment and supplies, get the permits and licenses is significant for each new location. Recruiting, hiring, training and leading teams of staff to serve customers takes a long time. It also takes time for the customer loyalty to be built. When a corporation’s leaders decide they must unwind all that investment of money, time and effort, it is an admission of leadership failure. There’s no other interpretation possible.
In my neighborhood, there is a Starbucks store that opened in 2000. I have been its customer weekly and daily for all of its existence. Lots of people in Kensington have similarly been faithful customers over the many years the store has been here. And while the range of product offerings has grown, the attraction to this store has always been the people: the staff and customers who have formed a strong friendship over the years, creating a community of friends that have made a huge difference in my quality of life as a resident of Kensington.
That quality of life has just gotten worse, because the Starbucks at 4134 Adams Avenue is closed as of tomorrow. The staff and the community just found out yesterday.
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