An odd sense of community
By Ralph R. Reiland
Published: Sunday, Oct. 20, 2013, 9:00 p.m.
There was a petition at my local Starbucks the other morning about the government shutdown.
Starbucks Chairman and CEO Howard Schultz said he was circulating the petitions to customers nationwide because of the “sad and striking realization that the American people have no platform with which to voice their frustration and outrage over the (government) shutdown,” which ended last week.
The Starbucks petition stated: “To our leaders in Washington, D.C., now's the time to come together to: 1. Reopen our government to serve the people. 2. Pay our debts on time to avoid another financial crisis. 3. Pass a bipartisan and comprehensive long-term budget deal by the end of the year.”
Warning that we are “on a collision course with time,” Schultz said “the responsibility of a company of any kind is changing because we have to provide for employees, help the communities we serve, and obviously, the government is not providing the leadership it once did.”
Next to the petition were Starbucks' latest two designer cups — a cinnamon-colored one, $8.95, “Made in Thailand,” and a glossy gray one, $9.95, “Made in China.”
The bottom line for a socially responsible company like Starbucks, according to Schultz? “We don't want to ignore what we believe are our responsibilities in the communities we serve.”
That sounds good, and on the counter adjacent to the Starbucks petition and cups from Thailand and China was a shiny new “Verismo System by Starbucks,” $149 “Swiss Engineered” and “Made in China.”
Using pods, the Verismo System makes espressos, lattes, and straight coffee. The Veranda Blend pods, $11.95 for 12 cups, were marked “Coffee Roasted in the Netherlands, Coffee Packed in Germany.”
It was the same with every other pod — Pike Place, Espresso Roast, Caffe Latte — all roasted in the Netherlands, all packed in Germany and all designed to deliver “The single cup home café experience” via a “Swiss Engineered” machine that was “Made in China.”
And the idea from CEO Schultz is that Starbucks doesn't “want to ignore what we believe are our responsibilities in the communities we serve”?
Has the company ignored the possibility of having its coffee roasted in Detroit, a community that's served by Starbucks?
Today, the official unemployment rate of Detroit vastly understates the city's economic collapse because half the people have left town and are therefore uncounted as unemployed. From a peak of 1.8 million, Detroit's population has dropped to 700,000.
Further, a Detroit News survey in October 2012 found that 40 percent of Detroit's residents planned to leave the city within the next five years, citing crime as the primary reason.
In 2012, Detroit blasted its way into second place among the nation's large cities in the number of murders per 100,000 population.
“Every problem in this city revolves around jobs,” explained Lindsay Chalmers, vice president of nonprofit Goodwill Industries of Greater Detroit, a few years back. And still, Starbucks is sending its beans halfway around the world to get roasted by the Dutch and packed by Germans.
It's 10,223 miles to get a coffee bean from Guatemala City to Amsterdam to Berlin to Detroit. Why not roast in Detroit, 1,900 miles from Guatemala? The aroma of roasting coffee in the morning beats the smell of gunpowder.
Ralph R. Reiland is an associate professor of economics at Robert Morris University and a local restaurateur (email@example.com).
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