Starbucks deal with Iowa State falls through, no agreement reached

Jill Thomasson

Plans for Iowa State to sell Starbucks coffee fell through after the two failed to reach an agreement.

Had Iowa State become a franchisee to Starbucks, Iowa State would have ran coffee shops and marketed Starbucks goods on campus.

The initial plan was to have Starbucks move into the Hub, where the copy center used to be. However, this is no longer a possibility.

“What happened is we went into negotiation with Starbucks and weren’t able to reach an agreement,” said Nancy Levandowski, director of ISU Dining.

Warren Madden, vice president of business and finance, said there were several factors that helped ISU Dining decide to no longer pursue Starbucks.

Madden said one factor was that Starbucks wanted a full-service facility in the Hub. Not only would Iowa State be selling Starbucks coffee, but also other Starbucks items such as CDs and other merchandise with the Starbucks logo.

“That’s not really what we were looking for,” Madden said. “This would have taken up more space in the building.”

Another factor was the contractual divisions, Madden said. Iowa State wanted Starbucks to report employees and other liability issues that Starbucks could not agree to.

Besides Starbucks, there have been 27 open bids on the Hub.

Madden said Iowa State is planning on reaching an agreement with another major coffee company, Caribou Coffee.

Levandowski said the goal is to open the coffee shop sometime in March, a year later than planned.

Starbucks could not be reached for comment.