Starbucks closing 600 U.S. stores

Discussion in 'Politics, Religion, Social Issues' started by leekohler, Jul 1, 2008.

  1. leekohler macrumors G5

    leekohler

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    Chicago, Illinois
    #1
    http://www.chicagotribune.com/business/chi-080701-starbucks,0,7203163.story

    I posted this here because it's bound to get political.

    Can't say I'm surprised or upset. When I first moved to Chicago, there were tons of independent cafes. Then Starbucks decided to pay their landlords to cancel their leases (at least that's what the owners of several cafes told me). Most of the independents were gone within a few years. However, I'm noticing a new trend toward people wanting independents back. There are four of them in my neighborhood and one Starbucks. Guess which place is empty?
     
  2. gauchogolfer macrumors 603

    gauchogolfer

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    #2
    I agree that people around here tend to frequent indie coffee places when they can, but Starbucks is doing well also. Probably luxury items like fancy espresso drinks fall off of people's budgets when the belt needs to be tightened. I wonder how well the indie places will do in that environment too.

    I live in Santa Barbara, so I'm not expecting any to be going under around here anytime soon. Plenty of money.
     
  3. iJohnHenry macrumors P6

    iJohnHenry

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  4. leekohler thread starter macrumors G5

    leekohler

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    #4
    The ones I go to are crowded. I'm in one now that's quite full, with lots of foot traffic as well. And of course, they're much cheaper than Starbucks. ;)
     
  5. gauchogolfer macrumors 603

    gauchogolfer

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    #5
    Capitalism ftw!
     
  6. PlaceofDis macrumors Core

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    Jan 6, 2004
    #6
    not surprising. they expanded too quickly and over-saturated their markets without realizing it i think. it wasn't planned well enough and as such they now have to close locations.

    but yes, there is certainly a harkening for the indie coffee shops. i'm still sad that my favorite is gone, due to BoA.
     
  7. themadchemist macrumors 68030

    themadchemist

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    Chi Town
    #7
    We've still got the Italian Coffee Bar, though they are closing one of their downtown locations. :( Not the one I go to, though. :D
     
  8. leekohler thread starter macrumors G5

    leekohler

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    #8
    Which place was that?
     
  9. PlaceofDis macrumors Core

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    Jan 6, 2004
    #9
    Filter, was at Damen/North/Milwaukee
     
  10. leekohler thread starter macrumors G5

    leekohler

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    #10
    Ugh! How about it! That one really made me mad. Swank Frank got the shaft too. All for a damn Bank of America, when there's another bank across the six corners? That one PO'd a lot of people.
     
  11. PlaceofDis macrumors Core

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    #11
    yeah. its not as if they didn't have ATMs all over the place. twunts.
     
  12. shecky Guest

    shecky

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    Obviously you're not a golfer.
    #12
    agreed. i have 7 stores within a 5-mile radius of me (including one that is literally a 5 minute walk or 45 second drive), and 18 stores within a 10-mile radius. and i am just in a small city (providence).
     
  13. marbles macrumors 68000

    marbles

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    #13
    hooray , maybe McDonalds next then Burger King .........
     
  14. gauchogolfer macrumors 603

    gauchogolfer

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    #14
    I'm also in a small town, one that doesn't really like big chain stores. Here's the GoogleMap result for a Starbucks search.

    Capture.JPG
     
  15. hanschien macrumors 6502

    hanschien

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    Houston, TX
    #15
    There's 2 Starbucks across the street from each other here in Houston:
    [​IMG]
     
  16. Nukemkb macrumors 6502a

    Nukemkb

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    Columbia, SC
    #16
    The google map made me curious of my 'southern' town...didn't have a clue we had that many starbucks.
     

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  17. Prof. macrumors 601

    Prof.

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    #17
    Thats what happens when you put stores on every *** damn corner. Starbucks used to be a luxury thing, now it's just like Dunkin' Donuts and McDonalds - they're everywhere.
     
  18. marbles macrumors 68000

    marbles

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    #18
    I wish all the folk who worked in these places would go set up there own independents...It'd certainly bring a bit of personality back to our streets.


    Starbucks round my way..
     

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  19. EricNau Moderator emeritus

    EricNau

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    San Francisco, CA
    #19
    This isn't really news as far as I'm concerned; wake me if it becomes a trend. In the meantime, Starbucks was bound to open a few stores where the demand wasn't high enough, and as a result, closed them down.


    Yeah, let's hope Starbucks doesn't go under like McDonalds or Dunkin Donuts. :D
     
  20. Prof. macrumors 601

    Prof.

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    #20
    McDonalds and DD are affordable; Starbucks?... not so much.
     
  21. SactoGuy18 macrumors 68030

    SactoGuy18

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    #21
    What's interesting is that I know a manager of a 7-Eleven store and she told me that coffee sales at her store have gone WAY up because of the bad economy.

    I actually like 7-Eleven coffee, mostly because of the strict corporate policy of not letting any pot of coffee sit more than one hour after being brewed. This results in really fresh coffee, something I really appreciate. :)
     
  22. Shannighan macrumors 6502a

    Shannighan

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    Buffalo, NY
    #22
    the plaza i work in has 3 so i dont think that this is such a bad idea
     
  23. stevento macrumors 6502

    stevento

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    Dec 10, 2006
    Location:
    Los Angeles
    #23
    i think starbucks will do ok without those 600 stores, people just have to walk another ten feet to the next starbucks

    i went to college in NYC and the whole island of manhattan is like one big Starbucks. on the island of manhattan, there are Starbucks across the street from Starbucks. its not uncommon to find more than one inside the same building. and they deliver now.
    edit: i guess with gas prices people really feel more like paying $2 for a cup of coffee rather than $6.
     
  24. GfPQqmcRKUvP macrumors 68040

    GfPQqmcRKUvP

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    #24
    Right when they were booming I knew they would oversaturate the market. Combine that with the benefits they pay their "baristas", the new age capitalistic model we heard about so much was bound to go through a few rough spots. I only wish I had stuck to my opinions and shorted some shares.
     
  25. hulugu macrumors 68000

    hulugu

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    #25
    I'm not surprised and I think the consensus here is about right.

    1. Starbucks has clearly over-saturated the market. When you have multiple areas where there are Starbucks literally across the street from each other, you know things have gotten out of hand.
    2. While Starbucks was able to steamroll many independents, I see small coffee shops competing and even winning against them. There's a coffee shop down by the U and it continues to be as busy as the nearest Starbucks. It helps that their coffee is better, their pastries are baked locally, and they have a hookah bar at night. This personality gives them an edge.
    3. The sputtering economy means that luxury items, like $4.00 coffees, will sell less as people tighten their belts.

    All of this things indicates a problem for Starbucks, closing 600 stores sounds like a very good strategy to help the company survive the near-term.
     

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