People are less likely to splurge on a $6 daily morning coffee amid a looming recession, and Starbucks shares are down more than 30% this year. However, another major problem faced by Starbucks stores is crime. CEO Howard Schultz announced that the company is closing 16 stores and “more” will close. While potential union busting cannot be discounted as a reason for store closures, it cannot be denied that crime is rampant in America right now.
“It shocked me that one of our retail partners’ primary concerns is their personal safety,” Schultz said in a leaked video. “America has become insecure.” No wonder store closures are happening in Democratic cities like Philadelphia, Portland, Seattle, Los Angeles, West Hollywood and Washington DC. The coffee giant is also considering banning the public from its toilets as security concerns rise. Employees are trained on how to de-escalate situations and, if necessary, how to deal with an active shooter in the store.
In fact, shops are closing in all the above mentioned cities as crime cannot be stopped. Manzoor Chutai, president of the Philadelphia Franchise Owners Association, said, “We have a lot of problems with the city of Philadelphia right now. We close right and left. Robbers come, they just rob the place right and left.Manzur said that no one wants to take over these shops, as even working in these places has become very dangerous. He estimates that the city has already lost about 20 stores, but is likely to lose even more solely due to crime.
Los Angeles was forced to close countless stores after California Government Crime Control forbade police from arresting shoplifters. In April, I reported that the California Retailers Association (CRA) reported that San Francisco and Oakland alone are losing $3.6 billion annually due to retail crime. Since the economy is constantly falling, we can expect crime to move in the opposite direction.