Starbucks warns of more store closures

In a move that shocked many, the coffee giant Starbucks recently announced the closure of 16 stores in the US. The CEO of the company, Howard Schultz, has now provided the reasoning for this in a leaked video.

Starbucks has confirmed to Insider that the footage of Schultz seemingly speaking to employees is authentic.

Before jumping into why the stores were closed, Schultz gives a grave warning: “Starbucks is a window into America…we are facing things in which the stores were not built for…we’re listening to our people and closing stores.

“This is just the beginning. There are going to be many more.”

Schultz clarifies that stores won’t be closed because they are unprofitable, but due to concerns that retail partners have about personal safety. He unpacks this statement, claiming that there are unsettling stories about what happens in the company’s restrooms including incidents of crime, homelessness, and mental illness.

The CEO doesn’t specify how the incidents have impacted stores or how mental illness has created concern.

In terms of what has led to this situation, Schultz has taken aim at the leaders of Democrat cities, where the stores are closing.

Schultz commented: “At the local state and federal level, these governments…and leaders, mayors & governors & city councils have advocated their responsibility in fighting crime & addressing mental illness.”

You can see the footage of the comments below:

Schultz blamed elected leaders of the Democrat cities where the stores are closing "at the local state and federal level, these governments… and leaders, mayors & governors & city councils have advocated their responsibility in fighting crime & addressing mental illness. pic.twitter.com/M8vTJgchCE

— Ari Hoffman (@thehoffather) July 13, 2022

The response of the worker’s union

The policy of shutting down stores comes amid Starbucks’ battle with unionizing employees. The company previously insisted that individual chains could not unionize, but this was not been accepted by lawmakers in Arizona, New York, and Seattle.

Due to the fact that two of the 16 stores that have been closed had unionized, there are concerns that the shutting down of stores is motivated by union busting. One of the stores that was discarded by Starbucks was also set to have a unionization vote in August, according to the pro-labor publication In These Times.

In a statement to Insider, the union for workers at the company Starbucks Workers United said: “Every decision Starbucks makes must be viewed through the lens of the company’s unprecedented and virulent union-busting campaign.”

Responding to the allegations made by the union, Starbucks has claimed that unions are not a factor in its decision to close stores and that the ultimate verdict came down to the safety of the public and staff.

In terms of the video and the intended takeaway from the discussion, a Starbucks spokesperson told UNLEASH: “Our goal is to create a welcoming and inclusive environment for everyone, our partners, our customers, and our communities. Our relationships with those who keep our stores safe, including elected officials and law enforcement, are guided by that principle.”

The spokesperson also highlighted that partners (employees) at the stores that have been closed will be transferred to neighboring branches.

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