Posts Tagged ‘Starbucks’

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From the Roanoke Times:

There was an article in today’s RT concerning Starbucks’ plan to add 1500 new stores in the next 5 years.

You can read more about that here:

http://www.reuters.com/article/2012/12/06/us-starbucks-growth-idUSBRE8B503020121206

Starbucks Corp (SBUX.O) plans to increase the number of its cafes in the Americas by more than 20 percent by opening more than 3,000 new shops there in the next five years as it looks to rely on tea and juice as much as coffee, it said on Wednesday.

The world’s largest coffee chain is also finished with acquisitions for now, after buying juice seller Evolution Fresh for $30 million and Bay Bread LLC’s La Boulange Bakery for $100 million over the last 13 months. Starbucks also plans to close its $620 million purchase of tea store chain Teavana Holdings Inc (TEA.N) by year-end.……

Compare and contrast this news with what Starbucks has been doing in the UK.

http://www.guardian.co.uk/business/2012/dec/03/starbucks-slash-lunch-breaks

Starbucks is cutting paid lunch breaks, sick leave and maternity benefits for thousands of British workers, sparking fresh anger over its business practices.

On the day the House of Commons’ public accounts committee branded the US coffee chain’s tax avoidance practices “immoral”, baristas arriving for work were told to sign revised employment terms, which include the removal of paid 30-minute lunch breaks and paid sick leave for the first day of illness. Some will also see pay increases frozen.

The changes affecting about 7,000 coffee shop staff emerged as the company tried to quell public and political outrage at its use of secretive company structures that has seen it pay just £8.6m in UK tax over the past 13 years on sales of £3.1bn.…..

Doesn’t it seem ironic that a chain which is doing good enough to open so many new stores is also cutting back on employee benefits? It’s those employees that make the operation of the stores possible and yet they have no say in the management of the stores, etc. Remember this people. This is how capitalism works. Drive down employee benefits and wages in order to increase profits even when you already have a successful profit making company.

Is it any wonder I call myself a communist?

Comment by Scott M. — December 6, 2012 @ 8:06 am