Starbucks Plans to Open Stores in Diverse, Under-represented Neighborhoods in 15 U.S. Cities

  • Starbucks Plans to Open Stores in Diverse, Under-represented Neighborhoods in 15 U.S. Cities, Will Work with Local Minority and Women-Owned Suppliers, Nonprofits and Civic Leaders to Create New Opportunities for Economic Development and Community Engagement
  • First Stores to Open in Chicago, Ferguson, Milwaukee, Phoenix, and Queens, New York
  • Starbucks Multiplies Impact Beyond Stores with $1.5 Million in Starbucks Foundation Opportunity for Youth Grants in 15 U.S. Cities to Support Youth Training and Hiring Programs with Proven Results

SEATTLE, 2015-7-20 — /EPR Retail News/ — On the heels of the launch of the private-sector led 100,000 Opportunities Initiative to increase hiring of America’s opportunity youth, Starbucks (NASDAQ: SBUX) today announced two key strategic initiatives to support economic development and social change in diverse, urban communities by helping young people connect with meaningful employment and pathways to success.

Starbucks to Open Stores in Diverse, Urban Communities 

Starbucks today announced it will open stores in 15 diverse, low to medium income urban communities across the U.S., with at least five stores expected to open in 2016. These stores will be a key strategy in achieving the company’s previously stated goal of hiring 10,000 Opportunity Youth – young people between the ages of 16-24 who face systemic barriers to meaningful jobs and education – and the 100,000 Opportunities Initiative’s collective goal of hiring 100,000 Opportunity Youth by 2018.

Starbucks will open the first of these stores in the Englewood neighborhood of Chicago’s south side; the West Florissant neighborhood in Ferguson, Missouri; the Jamaica neighborhood in Queens, New York; Milwaukee, Wisconsin; and will remodel its store at 7th & Camelback in Phoenix, Arizona. Each of these locations will have an onsite training space where young people can learn valuable customer service and retail skills, based on the same world-class training Starbucks partners (employees) receive. Starbucks will also partner with local youth services organizations and government to leverage existing programs that help connect young people with internships, apprenticeships and jobs in the community and foster the type of dialogue and engagement needed for continued social change.

“We have a long history of developing stores in diverse neighborhoods and we hope to do even more – together with the community – to bring great jobs, engage young people, and drive economic opportunity for all,” said Blair Taylor, chief community officer for Starbucks and chair of the Starbucks Foundation. “We want to be part of the solution in these communities and help create a sustainable future for those who may be looking for a second chance.”

Starbucks will hire on average 20 to 25 partners (employees) per store from the local community, providing a new pathway to opportunity through training and development, meaningful career options and industry-leading benefits that include the chance to get an online, tuition-free bachelor’s degree from Arizona State University through the Starbucks College Achievement Plan.

Starbucks also plans to collaborate with local women and minority owned contractors and businesses in the design and development of these stores, and work with women and minority owned suppliers to bring locally-made food products to the stores.

“There’s a quiet, much-needed movement underway to rebuild Ferguson” said Michael McMillan, chief executive officer for the Urban League of Metropolitan St. Louis, which recently broke ground on a new jobs and education center for youth in Ferguson. “Starbucks is stepping up and investing in our community in a way that will open up exciting opportunities for all. We hope more businesses will appreciate this city’s resilience and join us in turning what was a tragedy into a triumph.”

“We want to decrease the number of young men and women in Phoenix who are not connected to meaningful educational or career paths,” said Mayor Greg Stanton. “I applaud Starbucks for helping low-income, diverse communities address this problem. These new Starbucks stores will help engage our young people with exciting new training opportunities and help support our city’s minority-owned and operated suppliers.”

“In making this commitment to open in Englewood, Starbucks, like Whole Foods, sees the opportunity and revitalization occurring in one of Chicago’s oldest neighborhoods. 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 Mayor Rahm Emanuel.

“A new generation of young people – especially in low-income communities – are at risk for never, ever having a job,” said Congressman Bobby L. Rush of the 1st District of Illinois. “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. 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.”

To determine which communities are a good fit for this store concept, Starbucks looks at all the available data on the socio-economic health of America’s cities to understand which communities have the biggest opportunity gaps, which have the biggest need for business investment and leadership, and where there is local movement underway to build a better future for its residents. The company plans to accelerate the development of these stores over the next three years with the goal of opening in at least 10 additional cities by 2018.  Starbucks will monitor the success of the stores for continued adoption to embed with our store development strategies.

Starbucks Foundation Announces $1.5 Million in Opportunity for Youth Grants in 15 U.S. Cities

Today, the Starbucks Foundation also announced it has awarded $1.5 million in Opportunity for Youth grants to 72 nonprofit organizations in 15 U.S. cities for fiscal year 2016. These grants, ranging from $5,000 to $75,000, build on the foundation’s long history of investing in proven, as well as innovative, programs that equip young people ages 16-24 with the skills and training required for the changing global economy. Starbucks partners (employees) engage and volunteer with the organizations to help young people become job-ready and develop skills to continue on the pathway of opportunity. Since launching in 1997, the Starbucks Foundation has grown to support communities around the globe. In 2014, the foundation gave $13.1 million in 2014, making 144 grants to nonprofit organizations, including $3.37 million to organizations supporting opportunity youth around the world.

“The Starbucks Foundation is dedicated to empowering our nation’s young people to seek out the right path forward through development and training, public service and volunteering, educational opportunities as job readiness,” said Taylor. “We are thrilled to be able to award $1.5 million to these well-deserving non-profits who will help multiply impact beyond our stores and make a meaningful impact to these young future leaders.”

For more information on this news release, contact us.


Starbucks Plans to Open Stores in Diverse, Under-represented Neighborhoods in 15 U.S. Cities

Starbucks Plans to Open Stores in Diverse, Under-represented Neighborhoods in 15 U.S. Cities

Baltimore, Columbus, Orlando, Phoenix and Sacramento mayors partner with Starbucks to create new opportunities for young adults

SEATTLE, 2015-1-23 — /EPR Retail News/ — The manager of a Baltimore Starbucks struggled to find the right candidates for barista and shift manager jobs in her Southside Marketplace store.

“It can be hard to find someone who has that right mix of experience and passion,” said Erica Wertlieb. “I’m looking for candidates who are motivated, professional and eager to serve their customers and their communities. It’s a lot tougher than you might think.”

Managers at other companies in Baltimore have noticed similar hiring challenges, even though the city has over 15,000 young people between the ages of 16 and 24 who neither in school nor employed. These young men and women often referred to as “opportunity youth” because with the right skills and training, they represent a huge, untapped opportunity for an infusion of productivity and creativity in the workforce. Across the U.S. the opportunity youth population is approaching 7 million.

Finding ways to engage these young people in education or employment is part of an initiative Starbucks launched and the U.S. Conference of Mayors (USCM) called Solutions City℠. Over the course of one year, mayors in Baltimore, Columbus, Orlando, Phoenix and Sacramento meet with community leaders and residents at their local Starbucks® store to identify solutions to the challenges facing young people, including disconnected youth and veterans.

“Solutions City is about bringing stakeholders to the table, with their mayor, to have open, honest discussions over coffee, much like the conversations we’re already seeing in our stores each day,” said Blair Taylor, Starbucks chief community officer. “Since launching these town hall meetings last June, we’ve heard from hundreds of community leaders and young people about the need to change how employers and communities view opportunity youth. In many ways, our nation’s future rests upon our collective ability to connect these young men and women to jobs and opportunities that will help unlock their full potential.”

One such young person is Kendra, a Starbucks partner (employee), who recently completed a summer jobs program in Baltimore through YouthWorks. The city program connects unemployed 16-24 year olds from disadvantaged backgrounds with five- to six-week work experiences in local businesses, nonprofits, and city and state government agencies.

“YouthWorks heard I was looking to fill some open positions and called to eagerly tell me about Kendra,” recalled Wertlieb. “I had previously heard our mayor speak about this program at the first Solutions City town hall at my store, and knew I had to give it a shot. I interviewed Kendra over the phone and then again in person and was completely blown away. Frankly, I’d never had an interview go more smoothly.”

“I remember feeling completely at ease when I met Erica,” said Kendra who applied to be a Starbucks barista. “She asked some pretty tough questions, but I felt prepared to answer them. I don’t think I would have felt as confident if I hadn’t had the summer training with YouthWorks. The biggest challenge for young people like me is simply getting that first interview.”

Wertlieb hired Kendra, and said she was pleasantly surprised to see how quickly Kendra assimilated with the team at her store.

“She came in with a big smile on her first day and quickly proved she had what it takes to be a partner at our company. She truly opened up my eyes to the importance of building a team that represents our community,” said Wertlieb. “Each partner brings a different perspective to the table.”

Kendra now takes online business classes, while working at Starbucks, and would like to develop her own cosmetics line someday.

“Success stories like this show the lasting effect that a productive summer job can have on a young person,” said City of Baltimore Mayor Stephanie Rawlings-Blake. “These types of opportunities are such a great way to introduce young people to the workplace and help employers see the full potential these candidates can bring to their teams.”

The USCM Winter Meeting is being held from January 20-23. On Friday, Starbucks Blair Taylor will share insights and updates on several Solutions City projects:

In Sacramento, Mayor Kevin Johnson is building a coalition of employers and employment agencies to commit to hiring more than 100 (and counting) young people and veterans and ensure there are receiving the skills training they need to excel in the workplace.

In Columbus, Mayor Michael Coleman has brought together a diverse group of stakeholders to solve youth unemployment in the city. Partnerships like those between Starbucks, SK Foods (a Starbucks food supplier), and LeadersUp, which connects employers with skilled opportunity youth, are already proving to be a viable model for other employers in the community.

In Baltimore, Mayor Stephanie Rawlings-Blake is leveraging the city’s Hire One Youth and YouthWorks initiatives to bring together local employers and workforce training programs to find synergies as they work towards a common goal.

In Phoenix, Mayor Greg Stanton is bringing local leaders together with the city’s education system and nonprofits to begin discussion opportunities for a re-engagement center that will serve disconnected young people in the community.

In Orlando, Starbucks will work with Mayor Buddy Dyer to kick off a series of town halls beginning February 2015 aimed at supporting STEM after-school programs for young people in the community.

“As a company, we are deeply concerned about the growing number of disconnected or disengaged young people in our country,” said Taylor. “We fundamentally believe we need to work with our country’s mayors and other community leaders to come together and help create pathways to opportunity in education and employment.”

For more information on this news release, contact the Starbucks Newsroom.

Baltimore, Columbus, Orlando, Phoenix and Sacramento mayors partner with Starbucks to create new opportunities for young adults

Baltimore, Columbus, Orlando, Phoenix and Sacramento mayors partner with Starbucks to create new opportunities for young adults