Have people lost their latte factor? Are people drinking less coffee? This article from Fortune says that Starbucks is in serious trouble. Starbucks is closing 600 stores and is choosing to expand at half the expected rate in 2009.
So what’s the problem? Is it that people realize the money they are wasting on Starbucks? Or is it that Starbucks overexpanded?
I think it’s a combination of both. Right now the economy weak and people are worried about their jobs. So they are looking to save money not spend it foolishly.
Also Starbucks began to put themselves on every corner. Instead of being “exclusive”, trendy, and pricy, they were becoming the average joe coffee shop next door. What was once special was becoming common place. And when something becomes common place, people are less likely to purchase it for it’s uniqueness.
Before people who only drank starbucks were “elite”. Now they are common. So it’s probably a combination of things which are causing a slowdown in Starbucks sales. What do you think?
Edited: To add yes starbucks is also VERY expensive. Even a $2 small cup of black coffee does add up. And for the record, I hate starbucks. I used to never drink anything there even when I went with friends because I disliked what they stood for. Then one day I asked to use the restroom while sitting and chatting with my friends (who all had drinks) and was told the restroom was for patrons only. I didn’t have a drink, so I couldn’t use it. So it basically solidified my hatred of the company forever. I don’t drink their coffee ever.
5 responses so far ↓
1 tom // Jul 2, 2008 at 11:02 am
I think you pretty much nailed it.
One thing you didn’t touch was the price. Starbucks is expensive! People will still spend to get their morning coffee, but they don’t want to pay Starbucks prices.
2 chris // Jul 3, 2008 at 3:14 am
Another thing is the common mans places have upgraded their coffee. McDonalds has come a long way in improving their coffee taste (frankly I never had much problem with it before) and at a fraction of Starbucks cost. Even some of the travel plazas and convenience store gas stations has greatly upgraded their coffee quality.
And you cited that they were once exclusive and trendy, and now they are commonplace. People have moved on to the next trendy thing and left Starbucks behind.
Starbucks is on the losing side of the economy.
3 devil // Jul 3, 2008 at 1:21 pm
It isn’t nicknamed “Charbucks” for nothing. Icky, burned-tasting coffee.
Not letting you use the restroom is inexcusable. At my local Starbucks, the ladies room is regularly used by men (I don’t go there, but my friends do).
Good riddance, Starbucks.
4 Livingalmostlarge // Jul 3, 2008 at 2:24 pm
LOL, I am still miffed over the restroom for customers, but I get it. Now they aren’t so strict, but when they first opened they were.
I agree that places like McDonald’s sells newman’s own.
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