BAKERSFIELD, Calif. (KERO) — Starbucks recently has seen a decline in company sales and profits across the country. They are closing more than 500 stores nationwide. Bakersfield is apart of that closure removing four locations.
Coffee lovers, take note! Several Starbucks in Bakersfield are closing their doors! Here in Bakersfield, at least for stores are closing, much to customers dismay.
According to the Orange County Register over 500 Starbucks locations nationwide have closed and have either let their partners go or transferred them to other locations.
Earlier last week the company reported profits and sales from some locations weren't living up to their full potential "Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expiration. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult. " said Chairman Brian Niccol.
Richard Gearhart Economist from CSUB said "There is a big worry that maybe big box retailers will close under performing stores. Like target, Walmart, and Best Buy, because a lot of the common durable goods are sensitive to tariffs."
Adding to this is tariffs on coffee beans, which also drives up the price for coffee houses. At least four Starbucks in Bakersfield are closed, including those located at 30107 Paradise Way, 3300 White Lane, 9000 Ming Avenue, and 1631 Comanche Dr. are closed till further notice.
"Tariffs are not a smart economic idea. They never have been, they never will be. They don't make sense, either you are trying to raise money. Which then a tariff becomes a sales tax, but also they don't lead to more domestic employment. They don't bring jobs back!" said Gearhart
Richard tells me the closure of some stores could possibly bring more foot traffic and increase value for other locations.
"Starbucks is almost like this cultural brand, where even if you are going to get coffee somewhere else, you automatically think of Starbucks. I think what this will do is reorganize Starbucks and cause people to recognize the value in the brand, but also what the opportunity has to reach consumers." said Gearhart
It's not certain if more Starbucks stores will close in Kern County, as the company says it plans to come up with a new business plan.
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