Starbucks to Open New Stores in Low-Income Neighborhoods

Starbucks said Thursday it’s opening stores in 15 poor and middle-class inner-city locations across the USA, including one in Ferguson, Mo., as part of its bid to integrate more disadvantaged youths into the workforce. But now Starbucks is aiming to have a lasting impact on the community.

The new store, set to open early next year at 10776 West Florissant Avenue, near Interstate 270, will be larger than a standard Starbucks by about 300 to 400 square feet.

Starbucks spokeswoman Laurel Harper said details are not yet available on when the central Phoenix Starbucks location will close for renovations, specifically when it will reopen, and how much renovations are going to cost. The first stores are expected to open next year. Starbucks will also partner with local youth services organizations and government to leverage existing programs that help connect youth with internships, apprenticeships and jobs in the community and foster the type of dialogue and engagement needed for continued social change. “We’re looking for a three-way win here – the community wins, the individuals who are hired win and the companies win”. The company will also work with minority women and contractors for the design of these new locations.

Starbucks invested $250 million to help at least 25,000 partners, many of them opportunity youth, receive a bachelor’s degree by 2025. This Starbucks location is unique in that it will focus on hiring and training underserved young people. “These young people are often neglected, especially those who are no longer in school or unable to find jobs, and are not being trained to be productive citizens in the workplace. This is further proof that when the public and private sectors come together to invest in communities, we can create new jobs and economic resources that will spur economic growth into the future”, said Chicago Mayor Rahm Emanuel.

Howard Bailey employs a half a dozen young people at his new cafe in Englewood. “We look forward to welcoming Starbucks to our Englewood community and share in their ongoing commitment to the training, employment and education of our nation’s youth”. That employment, the company says, will provide “a new pathway to opportunity through training and development, meaningful career options and industry-leading benefits”.

In Chicago, Starbucks has picked a location in the heart of the city’s Englewood neighborhood, a predominantly African-American community which has suffered from blight and a reputation for violence in recent years. Phoenix was chosen because it has the highest percentage of opportunity youth as a fraction of the city’s population, Taylor said.

At present, the USA has 5.6 million youth in the 16-24 age group who are out of school and not working.

Schultz, who in the past has spoken out on support for legalizing same-sex marriage and stricter gun laws, has signaled in recent months that he plans to use the weight of Starbucks and his family foundation to tackle the issue of youth unemployment.

The stores are meant to be more than just the typical coffee shop.