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  • Starbucks to close 600 US stores

    Good news for some perhaps. It may happen in Australia too??

    http://business.smh.com.au/starbucks-to-close-600-us-stores-fire-12000-20080702-306x.html

    The article cites the increase in living costs such as fuel. I couldnt help wondering if there were other reasons such as consumers finding better coffee elsewhere.

    Ive only tried Starbucks a couple of times (once in Sydney, once in Singapore) and thought it over-rated. I have noticed recently that the Starbucks near where I work used to have queues a year or so ago now appears to be relatively empty

  • #2
    Re: Starbucks to close 600 US stores

    The last time I visited my sister in Vancouver I tried a Starbucks and was so unimpressed that I left the coffee. The store was dirty--I should have left before ordering.
    At that time in Gastown (the trendy area of the city) there was one intersection with a Starbucks on each corner!
    Greg

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    • #3
      Re: Starbucks to close 600 US stores

      Seems to be a glitch on the Most viewed articles link on the fairfax sites.
      It has this story down as the number 1, 3 and 4 most viewed in SMH website.
      Perhaps each story only deals with 200 stores ;-)

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      • #4
        Starbucks closes 600 stores in USA

        In the news today
        Starbucks is closing 600 stores in the USA because Americans find $4.00 US to expensive for coffee
        Public questioned by reporters said we pay $1.00 US at Maccas

        KK

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        • #5
          Re: Starbucks to close 600 US stores

          Great news for Boutique Coffee Shops/Cafes etc, ;D as peoples taste develops there can only be a move away from the majors....unless they invest a lotta dough in training and quality control :..... I worked for a very stylish franchise, leather couches, timber flooring, the whole nine yards, but when it came to quality control the Manager admitted he didnt have a clue how to make coffee : and when asked how do you know your staff can? he replied, "its on thier resume!" I asked about whether the company had a Trainer or someone to make sure each store was keeping to a standard and was met with a quizicle look :-?

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          • #6
            Re: Starbucks to close 600 US stores

            Sad fact is that some of Maccas/HJs machines will produce a more consistent / less offending cuppa than the Idiot behind the real machines in many franchised operations. A case of better the enemyyou know than the enemy you dont ;D

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            • #7
              Re: Starbucks to close 600 US stores

              I thought this line from the article was interesting:

              "Starbucks sales and earnings have declined as cash-strapped consumers facing record petrol prices pull back on gourmet coffee and other luxuries."

              So tell me again why this has affected Starbucks???

              -A-

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              • #8
                Re: Starbucks to close 600 US stores

                Yesterday I went to my usual coffee shop in Balmain. As I passed by Starbucks, I realised that it had closed down! (not that Ill miss it!). The guy in my fav coffee shop told me Starbucks had closed  yesterday. I guess the people in Balmain have voted with their feet and the Starbucks shop has gone bust. Its a win for good coffee, but its sad for the people who worked there I guess.

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                • #9
                  Re: Starbucks to close 600 US stores

                  The hospitality industry overall is in for a long, cold winter. Were often the first to feel effects of a slowdown. It doesnt help matters that the winter is generally a slower period.

                  You must continue to support your local small businesses, if youre able. The big boys wont go bust anytime soon, but those smaller establishments might.

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                  • #10
                    Re: Starbucks to close 600 US stores

                    Originally posted by Wine_of_the_Bean link=1214957262/0#8 date=1215117309

                    You must continue to support your local small businesses, if youre able. The big boys wont go bust anytime soon, but those smaller establishments might.
                    Yeah well I wish I had known about you when I used to work at Pennant Hills. I couldnt find anywhere around there that served decent coffee. The best available was at the Insomnia which was drinkable.

                    On your first point I have a preference for the smaller cafe, not the mega- variety (too impersonal). Now Sydney has changed its licensing laws, we may see a few more of,the Melbourne-style cafes tucked away in lanes. Thats one area where the megastores may not be able to compete. A glass of McShiraz? I dont think so.

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                    • #11
                      Re: Starbucks to close 600 US stores

                      The other thing about this 600 shops though, is that its 600 out of a zillion others. I heard on the news that they are closing these outlets that are not as profitable as their other ones. Also, many of these closures wont matter too much as there is another outlet across the road/on the next corner. And on top of this, they plan to open 200 more by the end of 2009 (I think).

                      I remember when I was in NY, looking down Broadway St, I could see 12 Starbucks outlets within the space of about 4-5 blocks. Literally one on every corner.

                      My point - 600 outlet closures for Starbucks is squat.

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                      • #12
                        Re: Starbucks to close 600 US stores

                        [QUOTE=flynnaus link=1214957262/0#9 date=1215122996]
                        Originally posted by Wine_of_the_Bean link=1214957262/0#8 date=1215117309
                        The best available was at the Insomnia which was drinkable.
                        Thats debatable hahaha I had one there once a while back when I was catching up with a few friends and it was bitter filth. Their food is great though

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                        • #13
                          Re: Starbucks to close 600 US stores

                          Well it was drinkable compared to the rest. I agree on the food though.

                          I will have to drop in to WotB one day. Im at Ryde so Id just hop on a train at West Ryde. Theres a Malaysian restaurant nearby iirc so the wife wont need much convincing.

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                          • #14
                            Re: Starbucks to close 600 US stores

                            A barista told me that the trouble with the franchises such as Starbucks and GJ is that they use less coffee per shot (12 grams not 14 or more) to save money. The brew is therefore either over extracted or weak. Can anyone verify this?

                            (I also hate the way they expect you to pay for an extra shot in a medium latte)

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                            • #15
                              Re: Starbucks to close 600 US stores

                              Hi all

                              I used to go to GJ. The coffee didnt taste weak. They did over extract my espressos which were always about 50 mL in volume but it didnt taste particularly bad as I think they used quite mild coffee. Starbucks was just undrinkable as espresso.

                              I think the problem might just be quite simple. There are more stores and more places now advertising "coffee" as a main feature and thus the customers have more places to go and so SB and GJ are finding it hard to grow in size. Looking at GJ and SB places here they are still well attended by people that order coffee flavoured milk drinks. I think most customers (less discerning than here though) would find their drinks perfectly OK.

                              Mike

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