The End Is Near: 600 Starbucks Stores Will Close
A Brief Starbucks Chronology: Starbucks stock plunges. The breakfast sandwich is discontinued. The commemorative Pike Place logo, introduced in April, freaks people out and is nicknamed "Slutbucks." She is then yanked, replaced by the familiar mermaid logo. A new frozen drink debuts, in one of many attempts to rejuvenate the business.
Adding to the time line, the New York Times reported yesterday that Starbucks will close 600 stores in the United States and lay-off 12,000 employees. With the real estate market down and oil prices up, it makes sense that we'd be punished with less soy fraps—but still, wow.
[Update: Apologies, only 600 stores will close, not 6,000. The editors regret the error.]
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19 Comments:
You mean 600 stores, since I don't know of any Starbucks with 2 employees.
msecondo at 6:46PM on 07/02/08
And all the store managers will burn their coffee in protest!
... oh ... er, wait ... ummm ...
Never mind ...
LunaPierCook at 6:47PM on 07/02/08
The Times story specifies 600 stores, rather than 6,000.
ccbweb at 6:47PM on 07/02/08
I'm pretty sure it's only 600.
http://ap.google.com/article/ALeqM5hinV1XVpDeRBwTJTEpQCkvIcoMJAD91LMEL80
natemcguire at 6:47PM on 07/02/08
Too bad it isn't 6,000 stores.
S Azcuy at 6:51PM on 07/02/08
@LunaPierCook:
Wow, that joke NEVER gets old!
... oh ... er, wait ... ummm ...
Never mind ...
rheogs at 9:29PM on 07/02/08
i love the concept of starbucks but resent paying $9.00 for 2 cups
of hyped up cappuccino. if they made it the way it was supposed to be made i wouldn't have to ask for a double shot -- thus incurring the
extra $$$. why does everything have to be a scene....can't we just
get great cappuccino without all the hype? the europeans and south american's have been getting great coffee with a cafe experience for centuries without breaking people's banks.
but still don't like to hear about people losing jobs....
pooch at 10:19PM on 07/02/08
I think it would be interesting to find out where these stores are closing and whether it's purely because of rising costs etc etc or if there are other factors like new coffee places providing competition.
lethargarian at 11:26PM on 07/02/08
@lethargarian: like McDonalds hitting em' where it hurts.
BirdDoggie at 1:21AM on 07/03/08
@ pooch: What is the "concept" of Starbucks in your opinion?
iliana at 1:41AM on 07/03/08
I hope they close some of the stores here in Columbus, Ohio - I'm sick of Starbucks opening stores across the street or just down the street from nearly every locally-owned coffee shop.
jschelb at 8:47AM on 07/03/08
Europe has Starbucks as well. Where I live in Germany there aren't any in my town, but drive 15-20 minutes either way and you can find them. At least in Frankfurt, Darmstadt and Heidelberg. I much prefer going to a local cafe though. It's like Lewis Black says...
"If you walk to the end of the block, there sits a Starbucks. And directly across the street -- in the exact same building as that Starbucks -- there is... another Starbucks. There is a Starbucks across the street from a Starbucks! And ladies and gentlemen, THAT is the end of the universe."
Schnauzer_Mama at 9:38AM on 07/03/08
@iliana: the concept of Starbucks is a hip place for hip white hipsters to hang out and have hip expensive coffee.
Garvey at 9:44AM on 07/03/08
@Garvey: And for braindead high school kids to get to call themselves "baristas" for serving you a crappy pumpkin latte.
worldcupfever at 10:00AM on 07/03/08
Most of those Starbucks employees have a health plan, even if they are part-time employees, don't they? For that reason, the brand would get my support.
LadyMarmalade at 11:05AM on 07/03/08
i have no use for starbucks -- i hope they close some of the new york locations that have become such a blight on the landscape here. plus their coffee is expensive and terrible, imo, and not in that order.
cybercita at 9:54AM on 07/04/08
Not quite a issue worthy of debate but from a business perspective it is interesting.
Starbucks (SB's) built their business on the historical coffee house platform borrowed from the Europeans.
They also brought the bold (over roasted) European brews and offered them to those who patronized their kiosks.
Initially patrons came to enjoy the coffee house ambiance. The coffee was tolerated.
SB's recognized early that those who came and purchased coffee were leaving their cups half full/empty--you decide depending on your attitude.
So SB's began to provide "candy bar coffee"---it started with chocolate and cream to hide/mask the awful over-roasted bitter brews and extended into cappuccino, lattes, caffe' latte's ,mocha's and other offerings that would cover the bitter/off flavor notes caused by over roasted coffee.
Smart business decision--but like many decisions made by SB's they had not thought beyond the next shareholder's meeting.
SB's built their coffee houses with reckless abandon and to keep the business afloat (cash flow) they began selling cold drinks, snacks and even today soup and sandwiches. Not enough pure coffee drinkers were around.
Wouldn't the "coffee connoisseurs" keep them in business? You know the fellow snobs who purchase just a very special cup of "Verona" fast and easy -compared to a non-fat, soy latte with extra foam-- (Pleaaassse). But those long lines are not made up of "connoisseurs" they are made up of "the masses" trying to cover the awful SB's brew with all sorts of concoctions--caramel, egg nog, chocolate--extra cream--please anything to lessen the taste of this terrible burnt brew..
The long lines of patrons could be lessened and perhaps ever more NEW customers would arrive if the coffee was palatable and not requiring a chemist from DuPont to cover the acid..
The reality is:
If you took away the food, cold drinks, sugary flavored drinks--and iced beverages the Starbucks connoisseurs would not have a line in which to wait and they --in time-- would not have a place to sit and use their Wi Fi because SB would be filing for bankruptcy protection.
So the "masses" who know more about coffee than SB.
Howard understands this and is attempting to build a Dunkin Coffee program with the franchise--so far the brand he built is smothering him in this attempt.
If he doesn't figure this out soon as other smaller coffee franchise have, then Starbucks is doomed.
The food is excellent--great sandwiches.
seattlesbest at 10:12AM on 07/06/08
@iliana: loving the "concept" of starbucks = the accessability of
having a cafe experience here in america. a totally unique experience,
pre-SB -- except in ethnic neighborhoods. not the same thing as having coffee in a "coffee shop" or diner.
i think they started taking themselves too seriously. i don't want to detract from the SB success story/phenonomon -- which was at first, seemingly spontaneous. they just started orchestrating too much, in my opinion - making it like a SB religious experience or something. it's only coffee....
pooch at 11:24PM on 07/07/08
@garvey: i agree with you, too.
pooch at 11:26PM on 07/07/08