Tag: thirdplaces

The decline of Starbucks

How is Starbucks doing these days? Well not good, according to some in the media:

And what should you expect in the first quarter of 2026? Key quote:

“Starbucks’ stock has lagged the broader market over the past year, driven by operational, financial, and sentiment-related factors, with the company’s share price declining roughly 10–14% while major indices posted gains. Key factors include persistent labor unrest and historic employee strikes, which have represented the longest and most widespread work stoppages in Starbucks’ history and raised investor concerns about operational disruption, rising wage and scheduling costs, and reputational risks that could depress sales and margins.

At the same time, Starbucks has faced slowing comparable store sales and transaction declines, higher labor and commodity costs, and the financial impact of restructuring initiatives, including store closures and layoffs, under its ‘Back to Starbucks’ turnaround plan, which have weighed on profitability and near-term earnings expectations.”

I thought Starbucks would turn it around as the pandemic declined and companies demanded RTO (return to office). Clearly they have more problems than I thought. It will be interesting to keep an eye on them over the next year.

As for me, I never forgave* them for abandoning so many neighbourhoods like mine during the pandemic, and then returning not as a Third Place but as a Grab n Go place. I now take my money to other coffee shops that did not do that. I suspect many others do too.

(*Forgave is too strong a word, but I said to myself when they closed my locals that I would remember that after the pandemic. By the way, the image above is of one of the Starbucks in my area.)

The importance of the Great Good Place

Cities need third places and citizens who live there need to fight for them. A book that makes the case for them is this one: The Great Good Place. As the blurb for the book explains:

In The Great Good Place, Ray Oldenburg gave the term “third places,” where people gather for the pleasure of good company and conversation, and explained just how important they are.

  • Discover the benefits of informal public and civic life and how it contributes to community health and individual well-being.
  • Explore how third places have been, and still are, vital to grassroots democracy.
  • Experience the power of third places and how they bring people together, fostering a sense of belonging and connection.
  • Allow this book to inspire you to create and revitalize your own third places, from coffee houses to community centers, and make a positive impact on your community.
  • Learn from real-life examples around the world, and see how third places have transformed and revitalized communities.
  • Gain a deeper understanding of the history and evolution of third places, from coffee houses to bookstores, and how they continue to play a vital role in our society.
  • Discover the power and potential of third places and how they can change your community and your life.

Reading that, it makes you want to send a copy of the book to the head of Starbucks, a company that’s been destroying third places in neighbourhoods by opening up coffee shops that have no seating. It’s not the only reason that the company has been doing poorly, but it no doubt contributes to it. Indeed, I walked by a new Starbucks last night with no seating and a Tim Horton’s with seating: the former was empty and the latter was not.

There has been a struggle to build better cities since the pandemic hit. Great third places are part of what will make cities better, but they don’t just show up. They need people like you to support them. So take the time to understand that and find out what you can do to help: talk to your local politicians, lobby community groups, share things with your friends, patronize good third places (and not grab and go food places). Perhaps read that book, so you can better express these ideas. If you want to get a copy, one place is here on Amazon: The Great Good Place: Cafes, Coffee Shops, Bookstores, Bars, Hair Salons, and Other Hangouts at the Heart of a Community. Better still, go find if your local bookstore can get you a copy, for bookstores can be good third places, too.