The last latte

Starbucks closing Rio Grande St. store as part of downsizing

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Is one Starbucks enough for Victorians? The coffee giant thinks so.

But Alice Summa, who lives in south Victoria, needs her Starbucks fix. She comes to the store at 1301 E. Rio Grande St. at least once a day for the refreshing passion tea.

“I’m addicted to passion tea,” said Summa, a University of Houston-Victoria student. “I love it.”

If the Rio Grande store closes as scheduled by the first half of 2009, Summa would have to drive across town to the Starbucks at 7105 N. Navarro St. With rising gas prices, she may have to cut down her passion tea intake – a thought that brought pain to her face’s expression on Friday.

The Rio Grande store is one of 56 Texas Starbucks stores closing. The company announced on July 1 that about 600 stores would be closing nationwide partly because of a softening U.S. economy, a company spokesperson wrote in a news release. The company operates 7,087 stores.

Throughout the decision-making process, CEO Howard Schultz kept consumers and affiliates updated via letters on the Starbucks Web site.

“Poor real estate decisions that were made, coupled with a very troubled economy, convinced us that these stores would not reach acceptable levels of profitability,” Schultz wrote in a July 8 post.

Seventy percent of the stores scheduled to close opened just in the past two years. The Rio Grande store opened in August last year. Field teams used criteria including current economic trends to identify stores that wouldn’t provide “acceptable returns in the foreseeable future,” the release stated.

Each store on average employs 20 full-time and part-time positions, which could mean up to 12,000 layoffs. The company regrets the disruption in the the lives of its “partners,” but seeks to build the business in the long term, the release stated.

Carlos Carrasco, a server from Victoria, couldn’t believe the word of all the closures at first.

“Starbucks is so popular,” he added.

The 20-year-old comes to his neighborhood’s store on Rio Grande at least three times a week for his favorite caramel macchiato with extra caramel. Although it would be more inconvenient to drive across town, he’ll do so to get his coffee.

“I like coffee better than gas,” he added. He’d rather skimp on movies and shopping than his Starbucks.

Melissa Galvan, a medical equipment sales manager from Victoria, doesn’t agree. She believes premium coffee should be a treat.

“It gets kind of pricey,” she said. “I would rather spend money for gas.”

Galvan thinks Starbucks opened too many stores in Victoria too quickly. She got used to Starbucks as ordinary, where as four years ago she would go to Houston and feel excited about a trip to Starbucks.

“I would go, ‘Starbucks!’ and my eyes would light up,” she said.

Tara Bozick is a reporter for the Advocate. Contact her at 361-580-6504 or tbozick@vicad.com, or comment on this story at www.VictoriaAdvocate.com.



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Comments

  • Priuses and other eco-friendly cars are a dime a dozen around here. I'd take the Escape Hybrid over a Prius any day, or one of the VW models (cheaper maintenance). But way to get your somewhat pretentious comment in and still be relevant to the story at hand.

    July 19, 2008 at 9:53 p.m.
  • This is a real shame. Victoria will have yet another empty building sitting around depreciating in value.
    I don't know because I don't pay that much attention to the topic, but I surely hope that these new businesses that come in, build new buildings and then leave are not getting a tax incentive to come here. If they are, maybe that tax incentive needs to be payable in five years instead of upfront.

    July 19, 2008 at 4:28 p.m.
  • Isn't there a Starbucks inside of Target?

    July 19, 2008 at 1:44 p.m.
  • It's a good strong coffee,and a good pick me upper in the morning,but McDonald's gives them a good run for their money..IMO
    I can drive my Prius; drink an occasional Starbucks, and never feel the pain..... Some buy expensive coffee,some expensive guns....Both feel they need it....God Bless America.

    July 19, 2008 at 1:41 p.m.
  • While I've never had any Starbucks coffee, I've heard about their prices. WOW! I hope nobody who drinks the stuff is complaining about the price of gasoline.

    July 19, 2008 at 1:34 p.m.
  • I was visiting for the 4th and was surprised to see a starbucks on that side of town. Not surprised they are closing it. Their regular black coffee is strong and good, and you can buy it and brew at home. Most people go for the "tricked up" coffee drinks.

    July 19, 2008 at 9:51 a.m.
  • there's also a Starbuck's in the lobby of Citizen's Medical Center that's open Monday through Friday and the two ladies that work there are two of the nicest people you could ever meet.

    July 19, 2008 at 8:18 a.m.
  • What people choose to spend their money on is their business. Everyone has a different opinion on what's a "waste" of it.

    July 19, 2008 at 7:21 a.m.
  • A silly waste of money. For milk coffee. What's on sell? Now that's good coffee. Oh, make it Black.

    July 19, 2008 at 2:08 a.m.
  • I never did understand all the hoopla about Starbuck's overrated, overpriced coffees. Don't they sell their bags where you can brew them at home? I thought they did, but I'm not sure--might be another gourmet coffee place I'm thinking about. If so, this might prevent people from having to go a mile or two out of their way if they really MUST have it.

    July 19, 2008 at 1:29 a.m.
  • and i was at my desk the other day wondering if this would impact us here in victoria, what a small world. well this in turn, furthers my belief that navarro is the very axis upon which victoria spins. eh, big deal, you still got the hardback cafe providing you with gourmet coffee, and that little stand inside citizen's hospital along with starbucks on navarro. it doesnt impact me much as i hate coffee.

    July 19, 2008 at 1:12 a.m.