Starbucks to close 500 more shops

[Jenjie]

Coffee chain Starbucks plans to shut 500 stores in the US on top of the 100 closures it had already announced.

 

Up to 12,000 full and part-time jobs will go, although Starbucks will try to move staff into other stores.

 

While it is closing underperforming stores, the company is still opening new US outlets, although it is cutting back from 250 to 200 next year.

 

Starbucks opened many stores in areas which have since been hard-hit by the housing slump such as Florida.

 

Feeling the pinch

 

About 70% of the outlets scheduled to be closed have only been open since 2006.

 

The company has been hard-hit by US consumers feeling the pinch and cutting back on their spending on expensive coffee.

 

The job losses would be about 7% of the company's global workforce.

 

Starbucks said it was closing stores that were either not profitable or likely to struggle in the future as economic conditions deteriorate.

 

"This makes our decision to close stores difficult because it is disrupting the lives of the people who have worked so hard to deliver superior service to our customers," said chief executive Howard Schultz.

 

"At the same time, we recognise that it is necessary to make decisions that will strengthen the US store portfolio."

 

After the announcement was made, Starbucks shares rose 6% in electronic post-market trading on Nasdaq.

 

http://news.bbc.co.uk/1/hi/business/7484563.stm

[mc_squared]

Hurrah! One in the eye for globalisation!!;)

[blackchickintheback]

I hope they don't close the one near my school! :stunned:

[soleil]

down with starbucks!!

 

(although, i must say that i love their biscotti. dipped in hot chocolate)

[Texasluvsjonny]

I hope they close them all!

[Black Rose]

Oh dear, what a shame.

[Larry]

Starbucks = shit

 

Too expensive! I'd rather prefer Mc Café! :nice: Their cakes are yummy and coffee is a lot cheaper than at Starbucks.

[Pseudonym]

Yeah let's all cheer for these Starbucks getting closed! Whoo! Down with globalization! Yay! Down with big market corporations!

 

Anyone want to invite the families of these laid-off workers to this party?

 

 

Didn't think so.:thinking:

[Larry]

And that's my problem now, because...? :dozey:

 

Sorry, but life is cruel sometimes. If you can't compete with other companies than you're either lost or you take this chance to think about new ideas, prices (!!!) etc. to stay competitive. And I'm sure Starbucks won't give up and perhaps sooner or later they will be more successful than now.

[Pseudonym]

And that's my problem now, because...? :dozey:

 

Sorry, but life is cruel sometimes. If you can't compete with other companies than you're either lost or you take this chance to think about new ideas, prices (!!!) etc. to stay competitive. And I'm sure Starbucks won't give up and perhaps sooner or later they will be more successful than now.

Theyre not closing down cuz they cant compete, theyre closing down cuz the economy is so tight they cant keep paying their employees and opening locations!

 

But right, lets all celebrate and cheer that a company is losing when it's the poeple that matter

[mc_squared]

^What about all the independent coffee shops that were forced to close because of Starbucks??

Those people all lost their jobs/livelihoods too.;)

[Pseudonym]

^What about all the independent coffee shops that were forced to close because of Starbucks??

Those people all lost their jobs/livelihoods too.;)

Yeah, but people arent cheering when they lose their jobs. Just because these people work at Starbucks, doesnt mean they like the company.

 

 

BTW Mark, Rick wants to see you and me in another pun-off:laugh3:

[mc_squared]

Yeah, but people arent cheering when they lose their jobs. Just because these people work at Starbucks, doesnt mean they like the company.

 

 

BTW Mark, Rick wants to see you and me in another pun-off:laugh3:

 

That's what happens when the most exciting thing that happens in your neighbourhood is the annual sheep-shearing competition.:P

[Pseudonym]

That's what happens when the most exciting thing that happens in your neighbourhood is the annual sheep-shearing competition.:P

Huh?:confused:

 

You've stumped me.

 

*waits for tree-stump pun*

[Larry]

I agree Mark!

 

Sure an economic recession is also responsible for less sales, but then you have to be responsive to a drop in demand. If people have less money to spend for drinks why to increase the price of coffee at the same time?

 

Also why is Mc Café even more successful now? Right, because they don't sell sandwiches together with coffee and their prices are ok. ;)

[mc_squared]

I agree Mark!

 

Sure an economic recession is also responsible for less sales, but then you have to be responsive to a drop in demand. If people have less money to spend for drinks why to increase the price of coffee at the same time?

 

Also why is Mc Café even more successful now? Right, because they don't sell sandwiches together with coffee and their prices are ok. ;)

 

Maybe - but they're still another global franchise........................... :(

[Petit Prince]

I never got the hype anyway. Why would anyone be prepared to pay about 3£ for a cup of coffee?

[mc_squared]

I never got the hype anyway. Why would anyone be prepared to pay about 3£ for a cup of coffee?

 

Sure beats me!!:rolleyes:

[Black Rose]

^What about all the independent coffee shops that were forced to close because of Starbucks??

Those people all lost their jobs/livelihoods too.;)

 

All the independent coffee shops just moved to Andover :lol:

 

Seriously, every time an old shop closes in Andover a coffee shop springs up in it's place within a matter of weeks.

 

Either a coffee shop or a betting shop or something equally as useless.

 

*goes off grumbling about it being the 1st anniversary of the last proper music shop in Andover closing*

[Black Rose]

I never got the hype anyway. Why would anyone be prepared to pay about 3£ for a cup of coffee?

 

Because some idiots have money to burn on £3 cups of coffee

[crazyduckette]

The only thing I've ever bought from Starbucks is a sandwich and overpriced brownie, begrudgingly.

 

It's just so overpriced. I always thought that too many were springing up too fast in every town.

Wonder this'll affect the ones in England too.

[Black Rose]

It might do Kara.

[StarsKay]

There are only 2 Starbucks in my local region and they both take roughly 15-20 minutes drive. I should note that I do live in Australia and here we don't have Starbucks and Coffee Bean competing for business, we have Gloria Jeans which is the local-starting-to-become-global coffee chain as primary preference with Starbucks a close second.

I like Starbucks. I understand those who don't though. There's the joke that in the States there's a Starbucks on every corner (which is only partly true I've witnessed lol) but as I live in Aus, I'm not fussed.

It is a shame about the employees having to be redistributed or potentially losing their jobs. It happens from time to time but as one door closes for one, another opens for someone else - let's just hope it's someone who deserves it and not another corporate chain :\

[Denise]

Happy there are no starbucks here at all and will never be, or maybe just one or for tourists who cannot live without their frappuccino or cheese cake, they know coffee tradition here is not going to be won by their so called coffee.

I've been to starbucks in London cause everyone was telling me I had to, I think I will never put a foot inside one of their shops again, overpriced and absolutely awful...but then again I love my real and short espresso (I might agree with Larry about Mc Cafè though, it's where I go when I need a real coffee and am not in Italy :D)