Starbucks to close 600 stores

02Jul08

Starbucks to close 600 stores

Starbucks has announced that it will close 600 stores and reduce its 2009 expansion plans by half. This is a major move for the chain which is famous for its aggressive expansion plans. All the stores due to close are located in “major U.S. markets”, perhaps Starbucks technique of opening multiple stores in the same location is beginning to struggle.

Price increases and economic struggles such as the rising cost of gas have resulted in reduced takings for the coffee company who’s Chief Executive Howard Schultz returned to his former position as CEO in January. Schultz has said that while some employees will lose their jobs attempts will be made to give as many as possible work in remaining stores. Up to 12,000 workers jobs are at risk.

“By far, this is the most angst-ridden decision we have made in my more than 25 years with Starbucks, but we realize that part of transforming a company is our ability to look forward, while pursuing innovation and reflecting, in many cases, with 20/20 hindsight, on the decisions that we made in the past, both good and bad.”

Howard Schultz

Coffee to go is increasingly being seen as an unnecessary luxury by Americans who are paying more than ever for gas and food. (Those of us in the UK who pay the equivalent of $10+ per gallon for petrol can relate). It cannot be a good economic indicator that Starbucks is actually closing stores rather than just opening less! At this rate it will only be the super rich (who always seem to be photographed with the iconic Starbucks cup in hand) who will be able to afford a Grande Cappuccino.

Starbucks Cup

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3 Responses to “Starbucks to close 600 stores”

  1. 1 hautepocket

    Have we heard anything about whether the prices will increase? I’m an avid lover of the Coffee Bean. I’m not necessarily proud to own that I stop there every morning before work. I realize coffee is a beverage but it has achieved ‘comfort food status’ in my heart. Lol.

  2. Every morning?! I wish I could afford to get one every morning. I have to settle for gross work coffee 😦


  1. 1 Innovating Coffee in a weakening economy | Grabbing Lightning

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