MOORHEAD— The switch from Caribou Coffee to Starbucks at The Coffee Stop has boosted business and promoted various opinions from three student clubs and organizations.
On Aug. 26, Concordia Dining Services announced via Cobweb Express that The Coffee Stop would be temporarily closing for a new brand platform to move into the space.
“The Coffee Stop at the Maize will reopen in mid-September, proudly serving your favorite Starbucks coffee… and more,” the Cobweb Express stated.
The Coffee Stop reopened on Sept. 16, and was met with great success.
“Last year, The Coffee Stop served 40 to 50 drinks per day,” said William Fradet, Assistant Director of Dining Services, “In only the first four days, we are serving 70 to 100 drinks per day.”
The change of brand will increase the options of cold beverages available for student purchase, something that Fradet believes will appeal to more Cobbers.
The Coffee Stop used to serve Caribou Coffee. Though the financial component wasn’t the largest aspect of the change, it was considered.
“The We Proudly Serve Starbucks program touted a 30% to 70% increase in sales at other locations that have made a brand change,” Fradet said. “Which I believe is due to increased variety of cold beverages they offer over competitor brands.”
The cost of beginning operations of a small-scale Caribou, or a “kiosk store” can be as much as $606,300 with a franchise fee of $35,000 per coffee house, whereas a small-scale Starbucks has an initial licensing fee of approximately $315,000. This would also include some of the equipment needed for operations.
Royalties also vary by each brand. According to Franchise Direct, Caribou Coffee has a royalty fee of 4% of gross sales for kiosks located on college campuses. They also carry a minimum royalty fee of $6,000 a year. Starbucks, on the other hand, has a royalty fee between 6-8%.
However, it is unclear if there is a minimum royalty fee for licensing a Starbucks location. These prices and percentages are estimates pulled from Franchise Direct and The Franchise King, as Concordia Dining Services did not provide financial details for The Coffee Stop to “The Concordian.”
This change may have also come from a place of convenience for Dining Services, as Starbucks has a robust drink collection and support.
“We are always on the lookout for ways to improve our services on campus,” Fradet said, “They (Starbucks) provide greater support in supplies, equipment, and training for us.”
Though this change is massive for Concordia Dining Services, there is some hesitancy from students supporting this decision.
With the ongoing Israel-Hamas War, many are boycotting Starbucks due to the ongoing lawsuits surrounding Workers United, a union for Starbucks associates.
Since then, many have been calling for a worldwide boycott of Starbucks, one group being Concordia Students for Justice in Palestine (CSJP).
In a statement to “The Concordian”, CSJP wrote:
“At Concordia, we advocate for responsible engagement in the world, including recognizing injustice and having influence that combats it. Starbucks represses this, and particularly, represses the discussion of the issue that Concordia SJP forms around. We believe that the partnership with Starbucks does not align with Concordia’s own values, which conflict with that of valuing civil discourse and promoting justice in its own mission statement. If Starbucks would sue its own workers for discussing Palestine, why should Concordia, as a place for discussion, risk a partnership with them?” CSJP said.
The Boycott, Divestment, and Sanctions (BDS) list includes a robust list of companies that are “profiting from the genocide of the Palestinian people,” according to their website. It is important to note that Starbucks is not listed on the official BDS list.
The Diversity, Equity and Inclusion Commission (DEIC) also released a statement to “The Concordian” on Oct. 2.:
“Last October, DEIC along with student organizers led a campus-wide demonstration regarding the genocide in Gaza. We called for some urgency in education & engagement within our institution and condemned the silence surrounding the events,” DEIC stated.
“Today DEIC is seeing an influx of students, who are still following the news coming out of Palestine and now Lebanon, express concern about Starbucks being served in DS and the Maize. In addition to the company being anti-union, there are numerous allegations against its ‘fair-trade’ label. Starbucks is also one of the main targets in Palestinian-led boycotts,” the statement continued.
“Unfortunately, Oct. 7 marks a whole year of the Israeli-led genocide. Many on our campus feel that we have regressed in our BREW (being responsibly engaged in the world) values and hope that we can find an alternative that better influences the affairs of the world,” DEIC said.
Grace Halvorson, President of the Student Government Association (SGA), released a statement on behalf of SGA regarding the change of coffee brand in the Maize:
“SGA supports students’ abilities to decide what services and products they choose to use on campus based on their own values and ethical commitments. Each of us must choose how we will contribute to a more ethical and just world. Part of learning to be responsible community members is to thoughtfully make those decisions,” the statement said.
Though there has been controversy with the decision to transfer over to Starbucks, many are enthusiastic about the switch over to the new coffee provider. The Coffee Stop will serve a full Starbucks menu, as well as seasonal drinks, according to Fradet.
One fear that many students had with the transition is the disappearance of their favorite fan: the Red Bull Infusions. No need to fear, as Dining Services has a solution.
“We will serve the Red Bull Infusions as long as the Cobbers keep buying them,” Fradet said.
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