This week in Santa Cruz County business: National Starbucks closures hit two local stores; Joby’s next move in the Middle East

Each week, we’re taking a closer look at the movers and shakers, the growth of industries and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Two local Starbucks locations shutter amid wave of closures nationally

The Starbucks stores at 745 Ocean St. in Santa Cruz and 219 Mount Hermon Rd. in Scotts Valley (Graham Plaza) have closed indefinitely as part of the national company’s restructuring efforts. The last day of service at both stores was Saturday, Sept. 27.

Last week, Starbucks CEO Brian Niccol announced the company would close about 1% of its stores and eliminate about 900 current non-retail jobs. Niccol said the stores slated for closure would be those “where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”

The Ocean Street Starbucks, which opened steps from the county’s courthouse in late 2018, was one of the first locations in Santa Cruz County to vote in favor of unionization in 2022.

Questions about the closures’ impact on unionized workers were directed to Workers United, the union that represents 12,000 baristas in the U.S., including those in Santa Cruz. In a statement, union leaders said, “This announcement makes it clear things are only going backwards at Starbucks under Brian Niccol’s leadership. Yet again, we’re experiencing new policies and major decisions being made with zero barista input.”

The union said late last week that it had been given few details about the closures, and it would be working to ensure any displaced workers could be moved to other stores of their preference. Corporate and union officials did not answer questions about how many employees in Santa Cruz County were impacted.

The closures come amid stalled contract negotiations between Starbucks and Workers United. Locally, union members will be conducting a practice picket Saturday afternoon outside the Starbucks at 1901 Mission St., an action that was scheduled before Niccol announced that some stores would be closing.

“It has never been more clear why baristas at Starbucks need the backing of a union. We’re demanding Starbucks finalize a fair union contract with 12,000 union baristas,” union leaders said. “For less than one average day’s sales, we can address the remaining items in the contract and move forward.”

Jaci Anderson, director of global communications for the Starbucks corporation, said Monday that the company is “working hard to offer transfers to nearby locations where possible and will move quickly to help partners understand what opportunities might be available to them.” She also said it will be offering severance packages for those unable to transfer to another store. 

In addition to severance, laid-off store employees will receive pay through at least Sunday, Oct. 5, according to the company. 

Joby Aviation makes new moves toward launching service in the Middle East

Santa Cruz-based electric air taxi company Joby Aviation has taken further steps to launch commercial service in the United Arab Emirates (UAE) by partnering with the Ras Al Khaimah Transport Authority and Skyports Infrastructure. The company aims to launch commercial service in the Emirate of Ras Al Khaimah in 2027.

Ras Al Khaimah Transport Authority is the government agency that plans, regulates and oversees all forms of transportation in the Emirate of Ras Al Khaimah. Skyports, headquartered in London, designs, builds and operates vertiports, which are essentially special heliports designed for electric air taxis like Joby’s. 

Joby’s electric air taxis are designed to carry a pilot and four passengers at speeds of up to 200 mph, and the company anticipates commercial service will operate similarly to Uber and Lyft, with customers using a mobile app to hail a ride.

While Joby continues to move through the necessary steps of obtaining certification of its commercial service in the U.S., the company has simultaneously made inroads to launch service in the UAE, and it expects to launch there first, sometime next year. The company previously signed a six-year deal to operate and scale air taxi services in the UAE, including exclusive rights to run air taxi services in Dubai. That includes plans to introduce service at Dubai International Airport and three of the city’s neighborhoods. Joby competitor Archer Aviation also plans to launch its first commercial service in the UAE, in Abu Dhabi.

Last month, both companies announced they would participate in a new federal program aimed at accelerating air taxi deployment in the U.S. Companies like Joby and Archer must achieve special certification from the Federal Aviation Administration, a multistage process that includes extensive testing. Joby is currently in the fourth of five stages in this process and expects to conduct test flights of its first FAA-conforming aircraft in the coming months.

ICYMI: Sweet news for downtown – Ashby Confections set to open Pacific Avenue shop

Local candy and chocolate maker Ashby Confections is set to move into the long-vacant Joe’s Pizza and Subs space at 1207 Pacific Ave. in downtown Santa Cruz. Owner Jennifer Ashby is hard at work transforming the 2,000-square-foot space into a production kitchen and hopes to open in spring of 2026. 

Ashby has earned an avid following for her confections since she started the business in 2004. For the past two decades, it has operated in Scotts Valley’s Victor Square shopping center, churning out chocolate tortoises, sour strips and more. In addition to retail sales, Ashby Confections also wholesales to 20 grocery stores and sells at three regional farmers markets. Read Lily Belli’s story here.

Ch-ch-changes

• Central Coast television newsroom shutters after 56 years: Salinas-based KION, the Central Coast’s CBS-affiliate television station, abruptly shut down its local news operation last week. The station had served viewers in Monterey, Santa Cruz and San Benito counties for 56 years. KION’s audience will now receive its news from KPIX, San Francisco’s CBS station. The move leaves just one television broadcaster, KSBW, serving the area with local news. Read more from Christopher Neely here. KION’s Spanish-language affiliate, Telemundo 23, also shut down, leaving the region without a Spanish-language newscast, as Tania Ortiz detailed here. 
• Nominations open for annual chamber awards: The Santa Cruz Area Chamber of Commerce is now accepting nominations for its 2025 annual awards, which will be presented at an event on April 16. The awards include person of the year, business of the year, small business of the year and organization of the year.
• Santa Cruz Community Credit Union adds mobile branch: Santa Cruz Community Credit Union will hold an open house on Oct. 9 to showcase its new mobile branch. MobiBranch, essentially a branded van outfitted with an ATM and staffed by credit union employees, is aimed at helping the credit union expand affordable financial services to more communities, and it will set up outside workplaces and partner locations throughout the county. The goal is to make it easier for people to open accounts, get financial education and learn about loan options. State Sen. John Laird and Community Action Board CEO MariaElena De La Garza will speak at the open house and ribbon-cutting, scheduled for 5:30 to 6:30 p.m. at the credit union’s branch at 55 River St. in Santa Cruz.
• UC Santa Cruz Arts Division hires new faculty for 2025-26 academic year: Two new faculty members have joined the UC Santa Cruz Arts Division for the new school year. Assistant professor Clementine Bordeaux will be teaching the history of art and visual culture class. Bordeaux, a member of the Sičáŋǧu Lakóta Nation, has a doctorate in cultural performance from UCLA. Jonaya Kemper, assistant professor, will be teaching performance, play and design, and creative technologies. The artist, educator and designer is a former lead game designer with degrees from New York University and Williams College. 
• Homeless Garden Project’s downtown Santa Cruz store temporarily closed for flooding: The Homeless Garden Project Pacific Avenue store is currently closed due to flooding issues. According to the organization’s director of operations, Brian Sweeney, the store was forced to close Sept. 8. He said he is currently working with the city to figure out next steps, which could include moving to a different location in downtown Santa Cruz. Sweeney said he doesn’t have a timeline for reopening just yet, but the organization is working hard to make it happen. 
• Former Capitola Rite Aid location inches closer to occupancy: The owner of King’s Plaza Shopping Center says a lease is still pending for the space that formerly housed Rite Aid. The Rite Aid store closed in December 2023 as a result of the company’s bankruptcy filing. Benjamin Ow, principal at Ow Commercial, which owns the shopping plaza, said his company has been in talks with a new tenant and is hopeful the space will soon have a new occupant. 

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

What’s new on the Lookout Job Board

• Membership Growth Manager at Lookout Local
• Dining Unit Manager at UC Santa Cruz
• Clinic Nurse II at The County of Santa Cruz
• Engineering Technician I/II at Scotts Valley Water District
• Superintendent/President at Cabrillo College

Want more? Browse all openings on our job board. | Hiring? Post your job today!

Looking at the numbers

• 75.7%: That was the occupancy rate for the county’s hotels in August, a very slight decline from July’s 77.6% rate but just over August 2024’s 75%. Short-term rental occupancy showed the biggest growth with a rate of 45.5% compared to 37.7% in August 2024. 
• $5,999,000: That’s the asking price for a 30-plus-acre Aptos property that includes several rental units and one of the only bamboo groves in Northern California, home to Bamboo Giant Nursery and Gardens. Owner Larry Gullman has been growing bamboo at Bamboo Giant for more than 25 years, with over 80 different species of bamboo. According to the real estate listing, the property at 5601 Freedom Blvd. in Aptos includes hiking paths, a koi pond and 17 different rental units, including two homes. According to real estate agent Nicole Myhrstad with locally based Bailey Properties, not only is this a chance to own a bamboo farm with rental property, but the space also could be used as a wedding and event venue. Parts of the property could also be subdivided for further development. “This is one of the most unique properties that will ever be for sale in California,” Myhrstad said. “It’s a once-in-a-lifetime investment opportunity.” While the Bamboo Giant business is technically separate from the sale of the property, Myhrstad said there’s a lot of flexibility and they are willing to work with prospective buyers if they want both or just the property. 

Save the date

• Wednesday, Oct. 1: The Pajaro Valley Chamber of Commerce is hosting a ribbon-cutting for Habitat for Humanity Monterey Bay’s relocated administrative offices. The new office is located at 555 Main St., Watsonville. To RSVP for the event, scheduled for 5:30 to 7 p.m., email development@habitatmontereybay.org. 
• Thursday, Oct. 2: The Santa Cruz Area Chamber of Commerce, Santa Cruz County Business Council and the Downtown Association of Santa Cruz will hold a business mixer open to members of business associations across Santa Cruz County. The event takes place from 5:30 to 7:30 p.m. at the Santa Cruz Museum of Art & History. Tickets can be purchased here.
• Wednesday, Oct. 8: The Santa Cruz Area Chamber of Commerce will host a “women’s business after hours” event at the Walnut Avenue Women’s Center, 303 Walnut Ave. in Santa Cruz, from 5 to 7 p.m. The event will feature guest speakers, refreshments, live music and a donation drive. Registration is here.
• Wednesday, Oct. 8: Capitola city officials are hosting a public meeting to discuss early planning efforts around the effort to rezone the Capitola Mall. The city council recently voted to move forward with zoning code updates that would pave the way for redeveloping the properties between Clares Street, 41st Avenue and Capitola Road. The meeting will be held at 6 p.m. at New Brighton Middle School Performing Arts Center, 250 Washburn Ave., Capitola.
• Friday, Oct. 17: Registration is now open for the 2025 State of the Region event, hosted by the Monterey Bay Economic Partnership. The event takes place at the University Center at Cal State Monterey Bay in Seaside from 9 a.m. to 4 p.m. The event focuses on economic opportunities and challenges in Santa Cruz, Monterey and San Benito counties. Among the speakers are Robert Rivas, speaker of the California State Assembly, Assemblymember Lori D. Wilson and former Santa Cruz County Supervisor Zach Friend.
• Tuesday, Oct. 28: Santa Cruz Works and the UC Santa Cruz Genomics Institute are hosting a “genomics rooftop mixer,” that will bring together local researchers to discuss their work and conduct demonstrations. A subset of molecular biology, genomics focuses on the study of genomes, an organism’s full set of DNA. That includes things like gene mapping and gene sequencing, which can be used to understand diseases and create new treatments. The event will be held from 4 to 7 p.m. on the rooftop of the Anton Pacific apartments, 800 Pacific Ave., Santa Cruz. Register here.
• Thursday, Oct. 30: The Santa Cruz Area Chamber of Commerce will hold the Women’s Leadership Summit at Mission Springs Conference Center in Scotts Valley from 9 a.m. to 3 p.m. Speakers include state Assemblymember Gail Pellerin, Santa Cruz Regional Transportation Commission Executive Director Sarah Christensen, Capitola Police Chief Sarah Ryan and Judi Oyama, Hall of Fame skateboarder, among others. Tickets are $125 for chamber members and $150 for non-members. More details here.
• Thursday, Oct. 30: Access2Employment is hosting a job fair at The Grove, formerly known as the Cocoanut Grove, in Santa Cruz from 4 to 6 p.m. Registration is here. Businesses that plan to hire in the coming months are invited to sign up to participate; more details here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• Road to Hollywood now runs through Santa Cruz (Good Times)
• As chain stores fail, mall vacancies rise, local business owners score rare real estate offers (CNBC)
• Small businesses whither under Trump’s tariffs: “It’s hard to breathe.” (The New York Times)

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