Starbucks asks for a break on rent for the next year

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Starbucks sent a letter to landlords demanding a break on rent for the next year as the coronavirus pandemic hammers U.S. sales.

The restaurant company, one of the largest in the country by number of stores, told landlords that starting June 1, for at least the next 12 months, it will need changes to lease terms and base rent.CFO Pat Grismer told analysts in late April that the company has stayed current on its rent, but he added that the company was pursuing lease concessions.

"We are having ongoing conversations with our landlords in various markets regarding what may be commercially reasonable lease concessions in the current environment," Grismer said.due to store closures, reduced operating hours and lower customer traffic resulting from the pandemic. Its earnings were cut in half as catastrophe pay for baristas, hourly pay increases and the cost of store safety items such as face coverings weighed on profits.

On May 4, the global coffee chain announced it would reopen 85% of its U.S. cafes by the end of that week after closing about half of its locations in March.

 

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How? Why not get your beans supplies for free too and maybe ask your employees to bank thier salaries with Starbucks too for a year. Who fucken cares if Starbucks bankrupt. For many years you made exquisite profit and you can't withstand 2 months of hardship. It better disappears

They signed the contract so they need to honor it.

Starbucks has about $2.6B in cash. They can make the rent. The landlords, by and large, need that money more than they do. I don’t want to hear another word about how socially and civically responsible Starbucks is.

I’d like a break. I’d like a decent cup of coffee to not cost $5 or more.

After buying back their own stock?

Rent break is a price restructure - it is obvious store front commercial is less valuable under a prolonged pandemic. Either the landlord works it out or they will have empty unfillable space. Only medical commercial is resilient in this market .

36 millions of unemployed Americans deserve lower coffee prices for the same period !

Those Starbucks who don’t pay taxes?!

greta Every SB I have seen in the past 2 months has had a packed drive through line EVERY HOUR they've been open. Interestingly, they restricted their hours because they have given 'catastrophe' leave to those not wanting to work and would not hire new - even temp - employees.

This is a repeat post

Wait landlords in NYC and Westchester are also going to get letters that small businesses can’t pay the rent

That explains the billions they make

As they keep opening more stores are they out of there mind ridiculous

Deflation here we come. Well done Congress

greta Yeah that’s a no boss

Whaaat

greta What a crock they just did a full remodel on the one near our house and they overcharge on top of it!

Well whaddya know. All it took was a story about Starbucks asking for rent concessions, and BOOM, landlords are now “the good guys”. Ha ha ha!!!

Well, that's called capitalism....

Sell more overpriced drinks

Lol. There’s 6 Starbucks within 2 blocks of my house. Time to shut down the franchises that are not making money.

12 months rent free, while making money at the same time? No thanks will be the answer.

greta They change $8 a cup-NO

Screw Starbucks!!

I suspect most landlords won't be looking too kindly on making concessions to a large multinational like $SBUX.

I wonder if they will lower coffee prices?

Why don't they sand letter to banks , about landlords not paying mortgage , I'm sure if bank will do it , landlords will do it also !!!!!

greta I'm sure their executives ain't taking a concession with their checks.

greta So, the landlords are supposed to go in the hole. Who's going to pay their expenses?

greta $5.00 a cup and you want a years free rent?

This is low Starbucks

greta Landlords need to pay their bills and taxes too

12 months, crazy, no way. Small companies are not getting 12 months forbearance.

So massive multinational corporations need bailouts but the American people get 1 $1200 cheque they may not even ever see?

greta Good luck

Balls

F Starbucks

Why 12 months? What kind of math do you do to find 12 instead of 3, 6 or 9 months?

They can sell their needle receptacles for some extra cash now that people aren't allowed to shoot up in their bathrooms.

Then should give them free coffee for life

Really?! They just announced a 40 million share buyback in March

Starbucks by us had a line of cars at the drive through a block deep yesterday. Texas is opening for business

For their employees, right? 🤔

They have money to build Starbucks in China. They should pay their rent to American landlords.

Nope.

Another example of corporate greed. BoycottStarbucks

Lol

Wasn’t it Starbucks who dodged tax in the UK?🤔

This should never be allowed to happen. SBX will just give their extra $ to the Dem machine.

No offence but fuck that..

Small thieves go to jail... big thieves get discounts

Imagine a management company/landlord getting a letter from a company worth 86billion$ to ease on rent for 12 months... what a joke. They can afford to take loses like everyone else. The value of $sbux is the same as it was this time last year... down -3% for the year lololol

Spending is going to be much more conservative. I won’t be wasting money on overpriced coffee!

Starbucks needs to get back to work! If Dunkin donuts can stay open, so car Starbucks

They wouldn't give a discount when I brought my own mug. Apparently you only get discount if it's a Starbucks mug that they made you buy previously.

No!!!

Starbucks

Starbucks should close their business if they can't pay! Done! Get over it!

Starbucks you should do a claw back and remove all the bonuses and pay for your top executives and boardroom memebers. If your landlords are stupid enough to give your co. a break you should use the money to help 1st responders and your employees. FirstResponders

You can thank the libtards for all the misery.

Give me a fucking break omg

12 months is a bit extreme. They must not have a lot of capital if they are demanding lower rent because they 'lost' $900+M in sales. Why is missed sales important if the stores are closed?

This is rich coming from the 8 usd for a cup of coffee company. Why should Starbucks get a break when all the working folks suffer. Maybe you elites should humble yourself to the situation that the real people are in ObamaGate

Is Starbucks on crack 12 months?!!

And there are financial advisors out there advising clients to buy REITs 😱

I sent a letter also to my landlord also. So far I'm staying locked inside and I only sneak out to get groceries in middle of the night. I climb out through bathroom window and park halfway down the street. I'm never leaving this place, I already carved my initials in the floor.

Seriously? 18th March “Starbucks announces share buyback program for 40 million shares” because “'We've got a strong balance sheet”

Concession for Starbucks CEO or employees. $86 billion company is asking for rent break, wow, that’s sad

Gosh, $8 sugar coffee spent too much on buybacks Ass hats

Wait, What about China being back. What a joke.

A company constantly gloating to the markets about record revenue and profits... now crying poor.

You can do that?

Half of something is better than all of nothing.

Starbucks can pay their rent if they're so worried about them.

And landlords replied: 'repatriate some of that cash you have sloshing around offshore and pay full freight for rent'.

Nice, I hate both

Fuck that... pay up like everyone else

Starbucks rich. They could prob pay all their rent for the next year in cash and still have billions left.

Its called leverage!

Why do corporations that make so much money need so much support. Wtf is this?!

In the Netherlands there is a new trend, many landlords agree to a rental discount but want a percentage of the turnover in return

What if every body asks for rent discount?

oh oh $SBUX

Landlords...

Kevin Johnson, current CEO of Starbucks made in excess of $19000000.00 (nineteen million) in 2019. Obviously Johnson and Howard Schultz suck at financial planning.

landlords: please help a poor Starbucks shareholder out

GENERAL POPULATION 'SEX FOR RENT' IN STARBUCKS CASE 'COFFEE FOR RENT'

Wow 12 months? Their open currently here. My mortgage lender said two months. Must be nice

these building owners have been overcharging to get the big chains and push out the mom and pop stores. There should be some concessions for $SBUX and others who have been getting ripped off for years. greed

Will landlords get a break from property tax & mortgage?

Cheesecake Factory just stopped paying its rent and that was early into this chaos.

Never saved a dime from $7 coffees?

When bean prices were up they raised prices, when they were down they didn't lower them. They can pay full freight. Hope they get no concessions. sbux.

BolognaFishMD WHAT?

Dreams

No

More deflation signs. The Fed should be petrified.

😂😂😂 and still doing massive buybacks

Cuz they're going broke, right

Aww poor Starbucks

Ok but what about everyone else? This doesn’t work if it’s ad hoc. Everyone man/woman/company for themselves will not solve this problem.

SBUX ⬇️

Bullish sign!

Former Cleveland Clinic Employee and Chinese 'Thousand Talents' Participant Arrested for Wire Fraud

Yuck coffee sold by them

They didn’t need to close- take out is allowed, especially for coffee.

Phock Starbucks!

& Let me Guess Pete's Doesnt get Help🙅🙅🙄🙄😒😒😒👎👎👎

Why not close a few Starbucks stores. They are one reason why we have so much carbon monoxide in our atmosphere, stemming from their customers running their vehicles while waiting in line for an overpriced cup of sugary coffee.

They charge 7$ for coffee and now they want a break?

Another big company that failed to put any rainy day money aside. Instead paying bonuses. Screw them

I imagine this would be received the same way Starbucks would’ve felt about it’s customers asking for 25% off for a while. Starbucks has put many Ma & Pa shops out of business. Pay your rent.

congratulations on bringing someone with full blown apocalyptic views to down the markets

Can we get a break on $5.83 ☕️

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they have no negotiating power on this. what are they going to do, threaten to move all sales to mobile delivery?

Should have used those corporate tax breaks better instead of stock buy backs. NO MORE HANDOUTS TO WALL STREET.

LOL imagine doing 26.6 billion in sales, 3.39 billion in income ANNUALY and asking for a rent pause while people who struggle month to month with less than 5k in their name have to pay. Fuck outta here Starbucks

Starbucks cant afford rent? Guess they should have spent less on Starbucks and Avocado toast

Only if they sell their burnt coffe for $1.00.

Hi my name is Hannah despite being quarantined because of covid19, I have made $10,000 with a startup capital of $1000, This is more than my usual salary Dm to start investing on something good

I feel the same about my child support

Wow! Good luck with that.

They were one of the businesses that opened early. Use the profits you’ve made overcharging for coffee.

Multinational company like Starbucks is asking for rental relief too!

They’re the worst tenant, screw them.

THIS IS RIDICULOUS THAT WEALTHY CORPORATIONS ASKING FOR BREAK ON RENT BUT SMALL BUSINESS OWNERS AND RENTERS DON'T HAVE THE SAME PRIVILEGE DURING A PANDEMIC CRISIS... I AM SURE STARBUCKS WERE GIVEN TAXPAYER'S MONEY

let the stock holders to pay the rent for you

Me too.

Let them sell the teavana portion. Oh wait. $sbux

Are Lattes really 'essential'

NO!

I took you more for a macchiato guy

They've been ripping customers off for years.

I'd like a break on my rent too.

I wonder what my landlord would say if I ask the same thing 🤔

Davidlaz Really what about people losing their homes, government going to pay for their rent?

who would pay for a $7 drink at a time like this?

Is Starbucks asking for rent forgiveness in 🇨🇳?

More Corporate welfare. They don't mind the tax breaks and citizen paid charity they get. Perhaps 'they' should have a savings set aside for emergencies I mean we are told to.. high rate loans to cover bills and rent? Same options we have.

Can I get a break in my $6 coffee? Oh that’s right I don’t drink that shit anyway

You watch ... They will get rent relief but Texans are just FUBAR!! Greed will Lead To Bleed!!

Could beg for forever free....like Tesla.

will they charge 50% less on their overpriced mixtures?

Nice. I wonder if other store owners can get the same treatment?

The American model of living a grand life on credit cards is not unique to individuals it’s a thing among corporations too. Growing on borrowed money 💰 with little regard for rainy day funds

That is US Corporate impudence at it is best.

Company that sells overpriced coffee asking for a break on rent. Yeah, no.

While their drive thru wraps around the goddamn block....

An onion story?

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