As Starbucks closes stores, what does it mean in a city built around independent coffee?

Downtown Santa Cruz might be small, but it offers plenty of variety when it comes to staying caffeinated. With independent coffee shops stretching down Pacific Avenue and few chain establishments, customers have plenty of local options.

But how do they feel when a familiar chain closes nearby?

On Sept. 24, Starbucks announced that it would close approximately 250 stores across the U.S. and Canada, citing poor financial performance or an inability to deliver the customer experience it aims to provide consistently. Two affected locations are in Santa Cruz County: one in Soquel (2740 41st Ave.) and another in Freedom (2024 Freedom Blvd.). Both closed their doors on Sept. 26. 

This follows two other county closures last year: the Starbucks at 745 Ocean St. in Santa Cruz and the location at 219 Mount Hermon Rd. in Scotts Valley, both part of Starbucks’ previous round of nationwide closures.

For some customers, the appeal of independent coffee shops comes down to quality and atmosphere. 

Jeremy Stone runs a vinyl listening lounge on Front Street in Santa Cruz and relies on Verve Coffee Roasters’ flagship location on Pacific Avenue as a space for meetings, community and free Wi-Fi. Stone said Starbucks long ago lost the atmosphere that makes local coffee shops appealing places to work and gather. He described the recent closures as a “long time coming.”

“Starbucks was founded kind of on the same idea as your local coffee shop. It was this accessible third space that was a vibe where you could just kinda pull up, like it had this aesthetic about it, this home away from home kinda thing,” Stone said. 

Stone said he feels the rampant expansion of Starbucks locations has diminished the brand’s original mission. He compared its corporatization to the growth of other huge chains, which can earn points for convenience and affordability but often fail to provide consumers with a meaningful experience.  

“And then in that [expansion], you lose something,” Stone said. “You lose the thing that a local shop has that you can’t ever really get back.” 

Miranda Palladino, a barista at the downtown Verve location and a UC Santa Cruz alum, has worked in the coffee industry for more than five years, including at Starbucks. During their afternoon shift, Palladino frothed milk over the espresso bar and shared their thoughts about the closures.

“I think it’s awesome, actually. Starbucks was the worst,” they said, noting the coffee giant’s disproportionate closure rate of unionized stores. “It was actually awful. I think that coffee should go back to the hands of the people, and people should have more rights. I think this industry is very susceptible to exploiting workers, and my experience at Starbucks was a bummer.” 

Across the street, Amanda Knox, 23, chatted with regulars at Lulu Carpenter’s while she filled customers’ reusable tumblers with fresh coffee. She took a break to explain what she sees as the difference between the experience at an independent coffee shop versus corporate chains. 

“I would say customer-to-employee relations, and being able to foster that connection with the person and take it at a slower speed. Here at Lulu’s, we get to experiment with a lot of different things, and a lot of the staff is included in what we do,” Knox said. 

“I’ve been making syrups, and I interact with all staff to understand how they think so that I can embed that in the creation. Everyone has a say in the product that goes out, and everyone gets involved. Whereas Starbucks has more guidelines they have to follow, and there’s not much wiggle room for creative activity.”

Still, not everyone welcomed the Starbucks closures. 

Nitsan Gottesfeld and Eilon Shaney, college students visiting family in Santa Cruz, were disappointed by the news.

“I love Starbucks! Their coffee is good,” Gottesfeld said. 

“I like that I know what I can get. Like, at local stores, it’s always different – sometimes they don’t have different types of coffee. At Starbucks, I just always know what there is on the menu. I like the sizes too,” Shaney added, gesturing toward his large cup from Lulu Carpenter’s. “Like, this is their big size of tea, but in Starbucks it’s this huge size, so that’s fun too.”

Santa Cruz was named “the best coffee city in America” by Favy in a recent analysis. The study observed 267 American cities with more than 50,000 residents, divided into five categories, and ranked them on factors such as affordability, walkability and the caliber of independent coffee shops. The analysis reported three or more independent coffee shops per 10,000 residents in Santa Cruz, reflecting the strong impact local shops have in the community. 

However, price, convenience and familiarity can still shape where customers get their morning fix, particularly for people who want a quick drink, a drive-thru or a specific Starbucks beverage.

Sitting cross-legged on a picnic bench outside Verve, Palladino summed up the choice this way:

“I think we’re all under the same thumb in a lot of ways, and you have to do what is best for your body and your health and where you’re at,” they said. “If you need something cheap, then go for it, because independent coffee is expensive, and it shouldn’t be a luxury. It’s up to the consumer. I’m not gonna judge anyone. I’m gonna judge the billion-dollar corporations, you know?”

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