Starbucks Tells Landlords to Cut Rent for One Year
Wouldn't it be nice if we could write a letter to our landlord or bank saying we're going to only pay reduced amounts of rent or mortgages for the next year?
Sounds like Starbucks has that power, maybe. Starbucks has written landlords telling them they need at least a year of reduced rent, according to The Seattle Times.
The mega-coffee chain, which has several locations here in Boise and the Treasure Valley, told their landlords across the country in a letter:
"Effective June 1, and for at least a period of 12 consecutive months, Starbucks will require concessions. This is the worst recession since the Great Depression and far more devastating than the global financial crisis.”
Sounds more like a demand, and less like a negotiation.
As for their landlords? They don't seem to be happy.
“I am highly disappointed, disgusted and angry. Shame on you.”
“For a publicly traded company with a $90 billion dollar market cap to ask us for help? I was astounded...We’re not going to agree. I need to go get a lawyer. That’s where this is headed.”
They're in a similar situation to a lot of big and small companies alike. Starbucks’ quarterly earnings fell by half from 2019 and they expect greater losses during the rest of the year.
So, are we writing a similar letter to our landlords and banks? Let me know, I'd love to join in and have a reduced mortgage.