Starbucks is closing 500 stores and laying off 7% of its workforce in the US

[lartinos]

Starbucks like many other things in our society is a luxury item, as the economy goes so will starbucks and other items such as many clothing stores. Look for starbucks to rebound in a big way and start opening stores when the economy eventually comes back.

 

[Grumpy Old Man]

Starbucks is all about the bottom line. When they were ordered to pay their employees they decided to close the lower performing stores. Simple, bottom line. When there is a Starbucks on every corner in every grocery store and shopping center it is easy to close a few thousand and make it seem like that was a big deal.

The fact is that their profit margin for a cup of coffee is 90+% If it was gasoline the price would be $145 a gallon

 

[velvett]

There's a former restaurant location in Southhampton that has failed for years, every new business that went in closed up within months. They made it a Starbucks and it's thriving for a few years now.

Go Figure.

I think they grew too large, too many location in a radius too small and they're scaling back.

 

[velvett]

That is one thing that I admired about the company however 2 years ago they implemented the increase in coffee prices across the board to cover the medical insurance for all employees. Now, I know that the consumer is ultimatley going to pay for it however this was a blatant publicility stunt by there CEO to justify the increase in prices...

You know that doesn't bother me, I think it's important that people have health insurance.

I mean people can make their own coffee for pennies a day in their homes and offices so if someone is so lazy that they have to buy coffee everyday they really ought not to complain.

 

[rnch]

here in nawlinz we take our coffee seriously...i never liked starbucks's stuff....too bitter for my refined taste buds.

 

[rnch]

wow, the one I go to is always packed.

of course it is! waddua expect from southern california?

 

[rnch]

We have 15 starbucks in tampa

5 of them are in my area and with in 3 miles of each other. I can literally drive to
all 5 from one to the other in a big circle in just a few minutes , if you look on the map you wil see what i mean

http://yellowpages.superpages.com/l...Tampa+FL+&searchbutton.x=59&searchbutton.y=14

is the local bagel/coffee chain still open in tampa? called obiemeyers or sumpin like dat? was one in brandon and one in central tampa? (this was 10 years ago when i was there)

they were SO much better than starbux.

 

[billfred]

Somehow I dont feel sorry for them... Since when does a cup of overbrewed coffee cost $4.50.... lol Karma

This is where the Starbucks concept got off track. Starbucks motto used to be we are not selling coffee, we are selling a refuge from Work and Home.

In that sense, people were happy to pay $4.5 for a coffee to have a nice leather couch to sit on, some good mags to read and a place to use your laptop.

Somehow they lost all that and started building boxes stores with drive-up windows and hard chairs. They were just selling coffe - no refuge and people started saying - hey why am I paying $4.50 for this coffe in a drive-up window.

 

[gjohnson5]

I dunno if many of you ever spent any time in the Crown Room or other frequent flyer private areas of airports, but Starbucks is like a public Crown room. A public Crown that instead of free drinks , they're over priced....

They definitly need to downsize in other to stay in business

This is where the Starbucks concept got off track. Starbucks motto used to be we are not selling coffee, we are selling a refuge from Work and Home.

 

[billfred]

I dunno if many of you ever spent any time in the Crown Room or other frequent flyer private areas of airports, but Starbucks is like a public Crown room. A public Crown that instead of free drinks , they're over priced....

They definitly need to downsize in other to stay in business

Yeah but instead of first class lounges, they started provided something that looked like the boarding gate waiting area. People are not going to pay $4 for coffee to sit in that area.