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20 Indiana Starbucks stores closing

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Cat Andersen/Eyewitness News

Indianapolis - The economic downturn is taking a toll on Starbucks. The company announced plans to close more than 20 stores across Indiana, including 12 in the Indianapolis area.

Customers swear by the carmel machiatto and vanilla latte drinks that have made Starbucks' reputation. For some of them, grabbing a Starbucks coffee is more than just a habit. It's a ritual.

"Two or three times a week because it's on my way to work and it's convenient," said Linda Broadus.

"For a while I was stopping every day," said Travis Moore.

But even fanatical Starbucks customers say lately, they've been scaling back.

"I haven't stopped at a Starbucks in probably two weeks," said Moore.

"I love it but it's expensive," said Chi Sherman.

The temptation to indulge may soon disappear. The Starbucks at the corner of Fall Creek and College is on the company's closing list. Eleven others are on the chopping block in the Indianapolis-area alone, one at 96th and Allisonville, at 38th and Meridian, and another on East 96th Street just to name a few.

Some faithful Starbucks customers say it could be a sign of the times.

"I think people are paying too much for gas and they can't afford to pay six bucks for coffee anymore," said Sherman.

"For a latte it's pretty excessive. I guess that's the problem with luxury items I guess during times of economic difficulties," said Moore.

"There for a while they were opening stores every where all the time so maybe they just over saturated themselves," said Broadus.

Some of the avid coffee drinkers we talked to say there may be an upside to all this: driving business to the types of coffee shops that were driven out of business when this coffee giant really spread its wings.

"I know of another coffee shop on my way to work but I don't know of another Starbucks so I probably will go to that local place," said Moore.

"It would be really nice if the little tiny coffee houses and were able to survive. I should probably be going to them but this is a drive through and it's on my way to work," said Sherman.

Starbucks says it will shut down 600 locations across the country, some as early as this month.

Stores provided boost for neighborhood

A shop at 38th and Meridian and another at Fall Creek and College were built to help perk up nearby neighborhoods.

"I really hate to see Starbucks go. They were a vital part of Mapleton Fall Creek Association," said Joe King, a neighbor of the Fall Creek store.

King fights violence through his Dirty Dozen Hunting and Fishing Club, which teaches youths the virtues of the great outdoors. He remembers the positive transition of the Fall Creek and College corner under Starbucks.

"We've been trying to build our neighborhood over there and when Magic and Starbucks opened that place up, it was a plus," King said, referring to store owner and former NBA star Magic Johnson.

The Fall Creek store was part of Magic Johnson's plan to brew up new business in rough neighborhoods. Now folks fear an empty store will invite blight.

"I think people would be more comfortable buying a house around the corner from a Starbucks than if it wasn't here and it was some random other store," a customer told Eyewitness News.

Councilwoman Jackie Nytes says a Starbucks on one corner across from a planned senior community was the right blend.

"These were the first good retail investments made in the neighborhood recently and we had high hopes for them," she said.

Nytes and others say the Fall Creek and Meridian Street stores always seemed busy. She says Fall Creek brought in money from other neighborhoods because folks often gathered for meetings at that store. She can't understand why they're closing.

In the past, two people were shot at the Fall Creek store and there's been violence outside the 38th and Meridian café, too. But the councilwoman says, in the past, Starbucks claimed those were not factors.

"There's going to be some unemployment of people who live in the neighborhood that have jobs there. That's going to hurt us," King said.

Nytes points to Starbucks' past mega-growth business strategy.

"They've made some bad business decisions and we're going to pay for them," Nytes said.

In a written reply to Eyewitness News, Starbucks said they closed the Fall Creek and 38th Street stores for reasons more than just economics. However, they didn't address specific stores. 

Complete list of store closures - Note: This is a PDF.

(Eyewitness News reporter David MacAnally contributed to this story.)

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