Page 32 - ARUBA TODAY

A32 FEATURE
Friday 17 January 2020
Starbucks, home of the $4 latte, is moving into poor areas

By DEE-ANN DURBIN AP "I can't think either of a re-
Business Writer tailer, especially one that
DETROIT (AP) — Starbucks has more of a discretion-
has a point to prove: There's ary, higher-end purchase,
more to the company than being willing to push into
selling $4 lattes to rich peo- neighborhoods and mar-
ple. kets that have less purchas-
The Seattle-based coffee ing power," Theodos said.
giant that has cultivated a "Starbucks usually appears
reputation for being social- when a neighborhood has
ly responsible said Thursday the purchasing power to
it is expanding its effort to support it."
put more coffee shops — He also applauded Star-
and create more jobs — in bucks' plan to add com-
poor neighborhoods. munity rooms in the stores,
Starbucks plans to open or since low-income neigh-
remodel 85 stores by 2025 borhoods often don't have
in rural and urban commu- many places to gather.
nities across the U.S. Each But he thinks the impact
store will hire local staff, in- will be limited. One Star-
cluding construction crews bucks store won't cause a
and artists, and will have neighborhood to gentrify,
community event spac- he said. The program is un-
es. The company will also This Wednesday, Jan. 15, 2020, photo, shows a Starbucks Community Store, which offers custom- usual for a big chain. Star-
work with local United Way ers the usual Starbucks products along with a large space for community meetings and programs, bucks has one advantage:
in Phoenix.
chapters to develop pro- Associated Press Unlike McDonald's, which
grams at each shop, such relies on franchisees, Star-
as youth job training classes Starbucks' core belief in re- bucks owns its standalone
and mentoring. sponsible capitalism. The U.S. stores and can open
The effort will bring to 100 coffee shops are profit- them wherever it wants to.
the number of "commu- able, he said, and have Panera Bread opened a
nity stores" Starbucks has the same menu as regular few pay-what-you-can ca-
opened since it announced Starbucks stores. fes starting in 2010, but all
the program in 2015. Prices vary, but not by have closed. They weren't
"All of these programs are much. A grande coconut profitable.
with the intent of being milk latte in Ferguson costs Starbucks said most of the
purposeful and profitable," $4.95, according to Star- 85 shops will be new, while
said John Kelly, Starbucks bucks' app. Six miles away, some will be existing stores
executive vice president a Starbucks in University that have been remod-
of public affairs and social City charges $5.25 for the eled. The company will
impact. same drink. In Jonesboro, consider various factors,
Starbucks opened its first a grande coffee is $2.25. This Wednesday, Jan. 15, 2020, photo shows a Starbucks Com- including youth unemploy-
munity Store, which offers more space for patrons and a com-
community store in Fergu- It's $2.45 at a Starbucks in munity meeting space, in Phoenix. ment rates and low house-
son, Missouri, in 2016, two downtown Atlanta. Associated Press hold income, in deciding
years after the riots that where to build them, and
broke out over the shoot- name as Leroy Z said he will give priority to econom-
ing of an unarmed black is glad Starbucks is giving ically distressed areas.
man by police. It has add- locals another choice for In New Orleans on Thurs-
ed 13 more locations since coffee beyond the fast- day, around 20 people
then, including stores in food restaurants in town. were eating, drinking and
Baltimore, Chicago, Dallas, But he was skeptical about working on computers at
New Orleans and Jones- how much Starbucks cares the Starbucks community
boro, Georgia. Another about the community and store, which sits near a va-
one will open this spring in how much the store will cant clothing shop. A sign
Prince George's County, bolster the local economy. behind the counter read,
Maryland. Starbucks esti- "They wouldn't be here if "This store stands for this
mates the shops have cre- they didn't think they could community" and "Local
ated more than 300 jobs. make money," he said. contractors / Local part-
The project could help the "They're here because this ners / Local love."
company overcome linger- a barista trainer at Starbucks, opens the doors to the commu- is a main drag to Atlanta." Starbucks already offers
ing mistrust in some com- nity meeting space at a local Starbucks Community Store, in Brett Theodos, a senior fel- tuition-free online college
munities after the furor that Phoenix. low at the Urban Institute courses to employees and
erupted in 2018 when two Associated Press who studies economic de- gives grants to those who
black men waiting to meet strip malls and numerous velopment, said he has vis- come up with ideas for
someone in a Philadelphia "This is not charity. These are chain restaurants. Business ited Starbucks' community helping their communities.
Starbucks were arrested successful stores," Kelly said, was brisk on Thursday af- stores in Chicago and Bal- In 1998, it worked with for-
for not ordering anything. acknowledging neighbors' ternoon, with a dozen or timore, and they seemed mer NBA star Magic John-
Starbucks mandated ra- skepticism. "We're defying so customers inside and a to be providing a service son to open stores in urban
cial bias training at its 8,000 a lot of the stereotypes and steady stream of cars at — and, more important, neighborhoods, but some
company-owned stores in we're proud to do so." the drive-thru. jobs — that those neighbor- struggled and closed. Star-
response to that incident. The Starbucks in Jonesboro A man who was walking hoods wouldn't otherwise bucks said it learned from
Kelly said the stores reflect lies on a busy road with by the store and gave his have. the experience.q