Summary3 min read

Becker Business Podcast – Episode Summary

Episode Title: Starbucks: Say it Isn’t So
Host: Scott Becker
Date: September 30, 2025

Overview

In this episode of the Becker Business Podcast, Scott Becker discusses the recent closure of a local Starbucks, reflecting on the wider business challenges facing the global coffee giant. Using his own community as an example, Becker delves into the impact of local competition and broader shifts in the coffee shop landscape, offering a personal perspective on change in a familiar market.

Key Discussion Points & Insights

Starbucks Scale and Global Presence

Starbucks has roughly 40,000 global locations.
- About 18,000–21,000 stores are in the US.
- An equal number exist internationally.
In comparison, Peet’s Coffee operates only about 370 stores, with coffee shops making up a small part of Peet’s larger conglomerate.

“There are now about 40,000 Starbucks in the world, and I think about about 18 to 21,000 are in the US and 18 to 21,000 of those are... international.”
— Scott Becker [00:24]

Current Starbucks Challenges

Starbucks is planning to close many stores and reduce labor staff in response to market pressure.
The CEO, previously with Chipotle, is under tremendous pressure to keep Starbucks relevant and successful.

“They've got this great CEO that came over from Chipotle who has got tremendous pressure on him to make Starbucks relevant and go and win and work.”
— Scott Becker [01:05]

Local Coffee Shop Competition

Becker shares a personal account: the local Starbucks down the block has announced closure, even after 25 years in operation.
The main reason: competition from a local coffee shop (“Hometown Coffee”) that has become exceptionally popular.
The Starbucks location saw multiple management turnovers and consistent underperformance before finally closing.

“Our most local store, the one down the block from us, is closing. It got hammered by a local coffee shop that opened up that just knocked it out of the park... Sadly, it had been there for about 25 years, but it's been through manager after manager after manager as it struggled to compete.”
— Scott Becker [01:24 & 01:48]

A Reflection on Local Coffee History

Other once-popular coffee chains have also disappeared from the area:
- Caribou Coffee: “People probably are not familiar with anymore, that is closed.”
- Einstein’s Coffee: “Closed.”
Hometown Coffee, operated by Lou and Julie Rubin and family, now dominates the local landscape.

“The other great coffee shop was replaced by something called Hometown Coffee, which is really just knocked it out of the park and really run by Lou and Julie Rubin and family. That's our local Starbucks saga.”
— Scott Becker [02:13]

Notable Quotes & Memorable Moments

On store closures and competition:
“Sadly, it had been there for about 25 years, but it's been through manager after manager after manager as it struggled to compete with the other local coffee shop.”
— Scott Becker [01:48]
On the resilience of local business:
“Hometown Coffee… just knocked it out of the park and really run by Lou and Julie Rubin and family.”
— Scott Becker [02:13]

Timestamps for Key Segments

00:24 – Starbucks and Peet’s scale comparison
01:05 – Pressure on Starbucks’ new CEO
01:24 – Local Starbucks store closure announcement
01:48 – Reflections on declining performance and management churn
02:13 – Rise of Hometown Coffee and legacy of local shops

Tone and Style

Scott Becker’s commentary is factual, conversational, and tinged with nostalgia for the local businesses that have come and gone. He shares insights with a mix of business acumen and genuine personal involvement, using accessible language and personal anecdotes to connect the macro (global business trends) with the micro (community-level impact).

Summary Prepared for Listeners Who Missed the Episode
This episode is a succinct, personal look at how even massive chains like Starbucks are not immune to grassroots competition and changing consumer tastes—and how local businesses, with the right touch, can thrive in today’s market.

Loading summary

Transcript1 lines

[00:00]
A
This is Scott Becker with the Becker Business and the Becker Private Equity Podcast. Today's discussion is Starbucks say it isn't so. So, so here's the deal with Starbucks. There are now about 40,000 Starbucks in the world, and I think about about 18 to 21,000 are in the US and 18 to 21,000 of those are out. Out of the, out of the country, international. And then there's only about 370 Pete's stores. And, and Pizza is a mega conglomerate of which their coffee shop stores are just a very, very small piece of this. Now, in terms of events that affect us locally, Starbucks is working on closing a ton of different stores. They're looking at reducing their number of employees, their labor staff. They've got this great CEO that came over from Chipotle who has got tremendous pressure on him to make Starbucks relevant and go and win and work. And it is relevant. 40,000 stores, ours are doing fine. This past weekend, they announced that our most local store, the one down the block from us, is closing. It got hammered by a local coffee shop that opened up that just knocked it out of the park. So that Starbucks became tremendously underperforming. Sadly, it had been there for about 25 years, but it's been through manager after manager after manager as it struggled to compete with the other local coffee shop. In the course of time that I've been in this community, which is 25 years, we've seen Caribou Coffee, which people probably are not familiar with anymore, that is closed. Einstein's Coffee closed. And now Starbucks is the latest one to close. The other great coffee shop was replaced by something called Hometown Coffee, which is really just knocked it out of the park and really run by Lou and Julie Rubin and family. That's our local Starbucks saga. Thank you for listening to the Becker Business Podcast, the Becker Private Equity Podcast. Thank you very, very.