Starbucks Looks to Cut Back on Rent

Coffee chain presses landlords for 20%-25% reductions
By Wesley Oliver,  Newser Staff
Posted May 29, 2009 2:42 PM CDT
Starbucks is pushing some landlords for as much as a 25% reduction in lease rates.   (AP Photo)
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(Newser) – Starbucks is asking some of its landlords for a venti favor: lower lease rates by as much as 25%, Bloomberg reports. With the real-estate market in decline, a rep says, “We’re taking advantage of the opportunity,” adding that most landlords foresee a “mutually beneficial situation.” Indeed, one analyst says many leasers are eager to keep tenants from leaving.

Starbucks began trying to cut renting costs in January, when it announced plans to shutter about 300 of its more than 7,000 shops and slash as many as 6,700 jobs—all part of a $195 million savings plan. But even if Starbucks closes stores, it could still be on the hook for rent in some cases, Bloomberg notes.