Starbucks And Landlords Battle Over Store Closings
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
When Starbucks announced that it was closing or putting off opening 600 stores, Wall Street applauded. But the flip side is that it has caused a great deal of angst by landlords and developers that were using the coffee shops as anchor tenants.
Having a high paying (and high traffic) Starbucks in ones shopping center was a great selling point for other tenants. So when the announcement came that the company was shutting down stores or not going to develop on leases they have already signed, landlords are getting nervous.
Especially going into slow time these landlords are not letting Starbucks out of the leases they signed. The battles between what was once the most favored tenant Starbucks and the landlords are starting to hit the courts.
I still blame the real estate agents for Starbucks troubles.
A handful of property owners and developers have filed lawsuits alleging that the Seattle coffee giant owes them money for rent or other expenses on properties where the company has shut down a store or decided not to open one after entering a lease. At least seven lawsuits have been filed against Starbucks since last year, but the anger isn’t limited just to litigants.
Starbucks, which is facing slow sales and weak earnings growth as customers cut back on lattes and Frappuccinos, intends to shut down more than 600 U.S. locations by early next year as part of a broader plan to revive the company.
The lease battles represent a turnabout for Starbucks, which has been one of the most sought-after retail tenants of the past decade. The chain helped draw other retailers to shopping centers and spent top dollar to get the best real estate during its rapid U.S. expansion. via WSJ.com
Although I agree on most points, I would like to point out that most of the banks that are being ...
The question is when are they going to release them on the market. Las Vegas leads the nation in ...
I keep seeing mentions of Florida's market getting better in multiple blogs. I'm increasingly under the assumption that at least ...
I would like to know more about it. I need to know how you file for it. Please let me ...
Great blog, keep the great content coming! 
If you want to succeed, do not say "we can prevent this in the future." Live in reality. ...
The price of the property depends on its quality and the deal between the management. Good and wise choices are ...
I don't have experience at actualy working in tha automotive bussinnes, but have experience working in a warehouse invironment. ...
Comment by Rachel from www.ourbania.com on 30 October 2008:
I am not so sure about real estate agents being the culprits in the demise of Starbucks. Perhaps Starbucks should have taken a cue from McDonald’s and put a cap on the maximum proximity in which stores can be near to one another. In my city, there is a Starbucks on two parallel streets, and the distance is minimal!!! Was that the real estate agents fault? Or should the corporate policy also be reexamined?