Peet’s Coffee & Tea has pulled the plug on all its remaining Ohio, Michigan and Pennsylvania stores, many of which had been open a year or less.
The company shuttered approximately 14 stores in those states in August, and Monday was the last day of operation for the remaining 11, including six stores in Ohio, three in Pennsylvania and two in Michigan. The vast majority of all the closed stores in those states were converted from Caribou Coffee locations beginning summer 2013. Both companies are owned by the German group Joh A. Benckiser.
Peet’s says it plans to give employees of the most recently closed stores an additional six weeks of existing hourly pay and benefits, through the end of January. The company also suggests the failed expansion attempts in these Rust Belt markets does not signal a decline in its retail growth strategy — for comparison’s sake, Peet’s operates more than 170 stores in California alone.
While the company had been tight-lipped about the rumored store closings, it recently offered this corporate statement:
Peet’s began an aggressive U.S. expansion in Summer 2013, and we’re seeing incredible growth in new markets like Chicago and D.C. As with any fast growing retail business, we continue to learn and make adjustment along the way to meet our long-term goals.
We recognize this is difficult timing, and we are providing our employees at least six weeks of pay and benefits support that will take them through the end of January. This means we’re paying them at their normal hourly rate through the end of this year plus at least one month of severance support. For the majority of these employees who worked both at Peet’s and Caribou, they will receive additional severance based on their collective tenure with both companies.
This is not an easy decision, but it’s important that we responsibly manage our costs and begin 2015 with a stronger focus on our top performing markets, including Chicago, D.C., Boston and California.
Nick Brown is the editor of Daily Coffee News by Roast Magazine. Feedback and story ideas are welcome at publisher (at) dailycoffeenews.com, or see the "About Us" page located at the bottom of this site for contact information.