X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In its drive to cutback store growth and close locations, it seems that Starbucks has ticked off a few landlords. The coffee giant is facing a number of lawsuits from property owners as it cuts back its empire, according to this Wall Street Journal report.”Some landlords contend Starbucks is paying rent late or darkening stores before specifying the closure dates to make the landlords wary of a fight and to pressure them into letting the company out of leases for a price they deem too low.”The chain denies the charges. “We’re not doing anything out of the norm of any other company that would seek to restructure its real-estate portfolio,” says a spokesman.We bet there are a lot of people out there who are bitter. Is a shopping center owner in today’s economy going to find a replacement for those stores that can pay as much rent and draw as much traffic?Speaking of traffic, a report done by Morgan Stanley found out why Starbucks has seen a dip in its customers. It turns out it was price, Nation’s Restaurant News reports.The research finds: “Of the Starbucks customers who are decreasing their visits, 84 percent blamed economic pressures. When asked what would increase their visits to Starbucks, 65 percent cited lower prices.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.