I'm not the biggest Starbucks fan, but I was surprised to read that the company is planning on closing 600 stores (8.5% of its total stores). The article appeared on CNN/Fortune's website - http://dailybriefing.blogs.fortune.cnn.com/2008/07/01/starbucks-has-a-bitter-plan/. It looks like the economy is to blame for Starbucks misfortune, but I wonder how much of a role, with $5 cups of coffee, Starbucks has had in hurting the economy. It's quite a big stretch to suggest that Starbucks has hurt the economy. And don't get me wrong... Starbucks does make a great cup of coffee and I'm sure there are stories of people who met to start careers and marriages at Starbucks, but I would say that the majority of Starbucks consumers would be in a slightly better financial position if they could trade those Starbucks cups from the past for McDonalds or Folgers.
If you have any thoughts on this story or my blog, I would love to hear your opinion!
Best regards,
Jay
Jay Allen
MovieVoice
jay@movievoice.net
Good information Jay! Thanks for sharing.
LiveLakeArrowhead.com
Well thankfully, some of those who frequented Starbucks will lose probably at least 10 lbs this year. Just hope they don't find another location for those sweet coffee drinks.
Economy is causing major cutbacks everywhere. Only industry that will grow is the bike shops, motor or leg power type.
Hi Jay. I take my Starbuck's very seriously.:)
Anyway, as a frequent customer and business watcher, there simply are too many stores in many areas for them to grow like Wall Street demands.
Do you know Surplus City down there in Paducah?
Ken
I have tended to do a bit of business at Starbucks. Most everyone can find something they enjoy there and I find it quieter that McDonalds though I have written a contract at McDonalds as well!
Jay~ I love starbucks coffee, especially the atmosphere. but I never liked the price. It is DEFINITELY overpriced. With today's economy, the first things people usually cut out is luxury items and starbucks is a luxury.
Seems like the first things to get cut in people's budgest are the little things, like a cup of latte' at Starbucks in the morning.
Guys, believe it or not, this is seriously bad news. They spend a tremendous amount on demographics and if these stores are closing it's because the money tree has lost enough leaves in the areas they are located, reflecting the fact that said locations are suffering a track-able downward shift in income/spending ratios. For us, that usually means a slow down in the housing market or a devaluation of the area. Bummer. Another declining market news flash... Starbucks has always been an indicator of where the baby boomers with money are at and are going.
It's a sad day in Whoville. As a devotee of Starbucks, this news truly saddens me. There was a time when Starbucks had a wonderful service where they would deliver those gorgeous dark beans to my front door on a scheduled basis. I never panicked when I was down to my last bit of French Roast because I knew in a matter of days there would be reinforcements arriving. One day, they took that all away and told me I had to forage on my own at a retail store...or remember on my own to order my fix online. It was my good fortune when the shiny white bags starting showing up in my nearby grocery store. Life was good. I now live in an area where not only do they carry it on the shelves, there is a small walk up bistro where you can order coffee, chai, and other Starbucks products. Hopefully since it is part of a national chain of grocery stores, it won't go away. So while I am satisfied today with French Roast, and an occassional Costa Rican number, I miss all the exotic coffee beans that found their way to my doorstep and eventually into my morning routine.
I heard this. I am not really a big Starbucks fan (even being a gourmet coffe lover that lived in the Seattle and Portland areas when it was getting started). I think they are also losing out to the competition that comes in at 50 cents to a buck a venti less.
Carol - try Boca Java great stuff and always delivered on time. You can go directly there or go through some different sites like Limbaugh or Hannity and several others and get some special intro offers at a great price.
98.7% of my clients love Starbucks! I meet at least half of my clients at Starbucks for one reason or another---to write offers, meet up there so they can hop in my car, or just grab a cup o' Jo for that needed boost. I have even interviewed future employees at Starbucks. Could it be the end of civilization as we know it?
It is a sign of the times for sure. People are struggling to make ends meet and $5 coffee is not in everyone's budgets.
BAD NEWS. VERY SERIOUS.
Hey Jay, I bet you see some extra traffic to this one. I submitted your story to DIGG, you can find it at
http://digg.com/travel_places/Starbucks_to_Close_600_Stores_2
Very good comments! To answer a few specific comments/questions:
Ken - yes, I have been to Surplus City once, but haven't bought anything there - it seems like they had some pretty good deals on luggage. Does Naperville have any of these stores?
C Tann-Starr - I agree, this is bad news. If people don't feel comfortable splurging on a drink, then they probably don't feel comfortable splurging on homes either.
Joe - Thanks for Digging the blog! I hope your associates find it thought provoking.
Again thanks for your comments and have a great evening!
Best regards,
Jay
Jay Allen
MovieVoice
jay@movievoice.net
Starbucks, what's that? :-)
I am not a Starbucks drinker myself. But to hear this kinda shocked me. But sooner or later,Starbucks is going to back all over me and your neighborhood corner selling coffees and lattes again. Great post.
Having been a cafe owner, I have knowledge of Starbucks practices. I would more say that their greed and inhumane practices have gotten them where they are.
I have never had a cup of coffee and for someone in their 40's I think I missed the bus but at least I can still afford a ticket