First it was their products. They brought back the old logo. That caused sparks amongst the conservative group. Then they cut 100 corporate jobs and eliminated breakfast sandwiches. After that, they announced the closing of 200 underperforming company-owned stores. Now its 600 stores slated to be shut down. Such is the life cycle of overexpanding their brand. Too many products. Too many niches. Too many branches. Too many little grubby fingers in too many different pots. Well, in a slumping economy, its fatal. People are buying less due to the insane gas prices. They can't get to the store, and instead forgo their morning lattes. And of course, shipping expenses, rent and utilities for underperforming stores spells big unnecessary expenditure. Not to mention paying the work force. Now, some people view this as just revenge, viewing Starbucks as a giant conglomerate that is hellbent on taking over the world by eliminating the mom-&-pop coffee shops. In some ways, I guess its true. But then again, almost every industry is being hit, and are forced to adopt cost-saving measures. Regardless, I hope the store I frequent doesn't get the ax. That would make my commute to work less pleasant than it already is.
Sunday, July 6, 2008
- 600 for Starbucks.
First it was their products. They brought back the old logo. That caused sparks amongst the conservative group. Then they cut 100 corporate jobs and eliminated breakfast sandwiches. After that, they announced the closing of 200 underperforming company-owned stores. Now its 600 stores slated to be shut down. Such is the life cycle of overexpanding their brand. Too many products. Too many niches. Too many branches. Too many little grubby fingers in too many different pots. Well, in a slumping economy, its fatal. People are buying less due to the insane gas prices. They can't get to the store, and instead forgo their morning lattes. And of course, shipping expenses, rent and utilities for underperforming stores spells big unnecessary expenditure. Not to mention paying the work force. Now, some people view this as just revenge, viewing Starbucks as a giant conglomerate that is hellbent on taking over the world by eliminating the mom-&-pop coffee shops. In some ways, I guess its true. But then again, almost every industry is being hit, and are forced to adopt cost-saving measures. Regardless, I hope the store I frequent doesn't get the ax. That would make my commute to work less pleasant than it already is.
Subscribe to:
Post Comments (Atom)

No comments:
Post a Comment