Starbucks announced the acquisition of the San Francisco-based coffee chain yesterday, and the news will likely be met with mixed reactions.
The news has stirred up some debate on social media, with many expressing their anger at the acquisition and its potential impact on their favorite coffee chain.
In a follow-up post on Twitter, a number of users argued that the acquisition would help Starbucks become more relevant in a world that increasingly looks to coffee as a health-food choice.
“We love the idea of Starbucks coming to San Francisco, but not only will it make the San Fran area look even more coffee-centric, it will also create jobs and drive down prices,” said one user, who went by @MashableSierra.
“And it’s all coming at the expense of the coffee industry.”
Starbucks has been in the coffee business for a few decades, but its popularity is beginning to wane.
According to a recent survey by market research firm Euromonitor International, sales in the U.S. dropped by nearly 2% in the second quarter, and by 6% in December.
“In the short term, a decline in coffee sales is inevitable,” Euromonitors said in a statement to Business Insider.
“The reality is that the demand for coffee in the United States has been falling for years and that is causing more people to choose to avoid the caffeinated beverage entirely.”
Still, it’s unclear how much impact the acquisition will have on Starbucks in the long term.
In its announcement, Starbucks said that it plans to “expand our presence in the San Jose metro area in the coming years, and to invest in new locations and technology to expand our reach in the region.”
Starbucks also confirmed that it will retain a significant number of employees in San Francisco.
“While we remain focused on making Starbucks a global brand, we are excited about the opportunity to expand in San Jose and beyond,” a Starbucks spokesperson told Business Insider in a press release.
Starbucks is currently owned by Starbucks International, a unit of Starbucks Holdings.
It has been one of the largest coffee companies in the world for decades.
In the last year, Starbucks has spent $8.5 billion on acquisitions, bringing its total global revenue to more than $100 billion.