Starbucks Coffee, an early morning staple for many Boston University students heading to class, is another casualty of the poor economy, BU and Starbucks sources said.’
Nationwide, Starbucks Coffee Company will lay off 6,000 workers and close down 300 stores after reporting a decrease in first quarter revenue, compared to the same percent last year, Starbucks Coffee Company Chief Executive Officer Howard Schultz announced on the company’s website Jan. 28.
The Starbucks at Warren Towers is in the process of reworking its staff scheduling, one of the store’s baristas, who wished to remain anonymous, said. Due to company policies, Starbucks employees must remain anonymous to the media in order to keep their positions.
About 25 people currently work at the store, and 15 of them are students, she said.
‘Starbucks has been cutting hours for a lot of students because it doesn’t want to fire any of the students,’ she said. ‘I used to work for twelve to thirteen hours a week, but now only eight.’
In addition to reducing employees’ hours, the store recently laid off two people, she said. To alleviate the economic stress on BU students, she said the store is trying all it can to keep the students.
‘I’m not too worried about the current situation, but I know we’re not hiring any more employees right now,’ she said. ‘We’d rather take fewer hours than having more people fired.’
Since four out of the five Starbucks on campus are franchises owned and operated by BU, these stores are unlikely to be affected by the company’s cutback actions, another Warren Towers Starbucks barista said.
‘So far we haven’t changed any prices,’ she said. ‘Many people are also giving up coffee as their new year resolutions.’
Multiple calls and emails to the Starbucks Coffee Company were not returned at press time.
Part of Starbucks’ successful business model is that it makes coffee for everyone, College of Arts and Sciences junior Jorge Jimenez said.
‘It makes people feel more intellectual and the whole ambiance makes you want to sit there all the time,’ he said.
Jimenez said two possible solutions for Starbucks during this tough economic time are to study people’s buying habits during recession, and lower the price of coffee to encourage consumer demand.
‘The margin of making coffee is insane,’ Jimenez said. ‘It takes very little to make: water and coffee.’
College of Communication freshman Aanch Khaneja, who said she goes to Starbucks about three times a week, said although the economy has not greatly affected her consumption habits have changed during the past few months.
‘I used to have a lot more coffee last semester, but it’s kind of expensive,’ Khaneja said. ‘I buy the same drinks, just less often.’
Jimenez, who said he is ‘addicted’ to Starbucks coffee, said he hopes the on-campus Starbucks do not close because of the poor economy. If they were to go under, the lack of their coffee would severely disrupt his life, he said.
‘In case of Starbucks closing down, I will probably invest in my own espresso machine to make my own coffee,’ Jimenez said.
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