Citing escalating safety concerns, Starbucks has announced the closure of 16 retail locations across the nation before the end of July. Interim CEO Howard Schultz indicated that this decision may lead to more store closures in the future. The closures highlight the ongoing challenges facing the company amid rising crime and social issues impacting its business model.

In a recent company meeting, Schultz criticized local, state, and federal officials for their failure to address crime and mental health issues. However, he overlooked the company’s previous public relations crisis under former CEO Kevin R. Johnson, when a manager at a Philadelphia Starbucks called the police on two Black men who were arrested for trespassing while waiting for a business meeting without making a purchase. This incident sparked widespread outrage and raised questions about racial profiling within the company.

The Philadelphia incident raised critical discussions about the balance between maintaining a welcoming environment for all customers while ensuring the safety of patrons and employees. The manager claimed that the men were asked to leave but refused. This situation has led to a broader conversation about the feasibility of allowing non-paying customers to occupy retail spaces for extended periods, raising concerns about the sustainability of such policies in consumer-oriented businesses.

The Catalyst to a Disaster Waiting to Happen

Starbucks’s decision to open its doors to everyone, regardless of whether they make a purchase, has resulted in significant backlash. This policy has not only frustrated paying customers but has also placed undue pressure on employees tasked with maintaining cleanliness and order, especially in restrooms that have become increasingly used by homeless individuals during the COVID-19 pandemic.

While Starbucks can point fingers at government officials for failing to provide adequate safety, the company must also take responsibility for its own policies. Kevin Ross, CEO of TheIndustry.biz, noted that his experiences at Starbucks became uncomfortable as homeless individuals occupied space with their belongings, leading to unpredictable situations. This environment has deterred many paying customers from using the space, highlighting the consequences of the company’s open-door policy.

Homeless People Do Need More Outlets

The responsibility for addressing the needs of homeless individuals lies not only with private businesses like Starbucks but also with state and local authorities. Many argue that there are insufficient resources available for homeless populations, which exacerbates the issues faced by businesses that aim to provide a welcoming environment. Ross recounted a recent experience in Woodland Hills, California, where a homeless man disrupted the store, forcing a temporary closure for safety reasons.

It is essential to strike a balance between providing access to resources for homeless individuals and ensuring that paying customers feel safe and comfortable. Recently, Starbucks has been seen distributing water to homeless individuals, a gesture that, while commendable, has raised concerns about the impact on pricing for regular customers. The price of a Venti Iced Coffee has climbed close to $5.00, reflecting the rising costs associated with the company’s outreach efforts.

Is Starbucks a Retail Chain or a Shelter?

As Starbucks navigates these challenges, many stores are shifting towards drive-thru and online ordering models while limiting access to electrical outlets. This move aims to reduce the presence of homeless individuals in stores but also restricts paying customers who wish to charge their devices while working.

Reversing the decision to allow open access to stores would likely lead to another public relations nightmare for Starbucks, as it would be perceived as a retreat from their commitment to inclusivity. Schultz expressed concern over the safety of retail partners, stating, “It has shocked me that one of the primary concerns our retail partners have is their safety. America has become unsafe.”

In response to these safety concerns, Starbucks plans to close six locations in the Los Angeles area and 10 additional stores in other major cities. The specific locations in Los Angeles include high-traffic areas that have become increasingly uncomfortable for customers and employees alike.

The Future of the Starbucks Experience

To address these ongoing challenges, Starbucks may need to rethink its entire customer experience. The shift towards drive-thru and online ordering could be a necessary step, potentially leading to the closure of seating areas in stores nationwide. While such drastic measures may seem extreme, they could be essential for ensuring the safety and comfort of both customers and employees in an increasingly complex retail landscape.