The failing economy has been tough on everyone, including the Starbucks powerhouse.
On Jan. 29 Starbucks announced the closing of approximately 200 stores nationally, but the University may see the opening of one in the Jerome Library.
Tom Atwood, the dean of the University Libraries, said they are still assessing the decision for a coffee shop in the library. The only thing decided is where a coffee shop would go, which is in the reserve room across from the circulation desk. After doing a survey, Atwood said it was clear a coffee shop was wanted in the library.
“People want a coffee shop in the library, and we would love to have one here. Most academic libraries already do,” Atwood said. “I’m not sure Starbucks is the answer though.”
The announcement that 200 stores would be closing came almost exactly six months after the announcement of approximately 600 stores closing. In July 2008 the stores which closed included nine in Ohio, including one in Maumee. The list of stores which will be closed has not yet been finalized, and may not be announced until the end of the fiscal year, according to a Starbucks representative.
“We would like to inform those stores which may be closing before completing a complete list,” the representative said. “Those which are closing will be based upon productivity, need in the area and the impact of the closing in this current economic time.”
There are three Starbucks stores in Bowling Green; one in the Union, one inside Kroger on North Main Street and one on East Wooster Street next to Chipotle. All three locations declined to comment on possible closures.
The exact number of Starbucks employees who may lose their jobs is unknown, however it could be as many as 6,000 jobs in the 2009 fiscal year, according to a Starbucks press release. Current team members will be offered to transfer to a different location, also according to the release.
“We would like to keep those dedicated employees on the team,” the representative said.
Kayla Molczan, a frequent Starbucks customer at the University, is surprised about the number of stores which are closing.
“I knew the economy was bad, but I didn’t think it would affect something like Starbucks,” she said. “Everybody drinks coffee.”
Regardless of whether a Starbucks will be opening in the library, librarian John Forsyth thinks coffee and books are a fine match.
“Everyone is in favor for it. People like to drink coffee when they’re in the library and studying,” he said. “It’s a fine idea to help out the students and ourselves.”
For this quarter in the fiscal year, Starbucks has seen a loss of six percent in net revenues going from $2.8 billion to $2.6 billion from last year to this year. Starbucks is planning on cutting over $500 million by closing their stores, cutting costs and by opening 170 new stores internationally, according to the Starbucks Web site.
Starbucks also announced on Feb. 12 their plan to incorporate instant coffee, a recent breakthrough product that delivers Starbucks coffee in an instant form. Starbucks plans to host exclusive events next week in New York and other cities to introduce this new addition to the Starbucks menu, according to a Starbucks press release.
A DIP IN SALES
First Quarter Fiscal 2009 Results as reported by Starbucks:
–Net revenues for the first quarter of fiscal 2008: $2.8 billion
–Net revenues for the first quarter of fiscal 2009: $2.6 billion, a decrease in 6 percent
–Number of stores announced to close in 2009: 300 internationally, 200 in the U.S.
–Number of the positions that could be lost: 6,000
–Number of stores planned to open in the U.S.: 140 down from 200
–Number of stores planned to open Internationally: 170 down from 270
