I admit to fueling my afternoon lull with a Starbucks addiction, but lately less so.
The economy must not be getting any better as Starbucks the coffee house on every American corner has announced plans to close 600 locations.
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I can tell you why Starbucks is feeling the pinch and that is due to the fact that they over expanded a few years ago. Now it is time for them to rein in the stores that are making money and cut the non-profitable stores off the company payroll.
Yes, it is true that Starbucks is feeling the recession like everyone else but their prices are not attracting the working class consumer who is trying to just get the mortgage paid every month. Coffee may be seen as a luxury and something that is cut first from the family budget.
Sheila at Starbucks "Working"
Interestingly enough as I scanned the list of stores being closed in my city, I noticed that all of the affected stores are in working class neighborhoods. There are not any affluent Starbucks coffee shops on the list in my region.
In my own neighborhood, we have three Starbucks within half a mile of each other and they are not hurting for business. The patrons driving their expensive automobiles gladly stand in a long line and pay the inflated price for a decent cup of coffee.
Still it is obvious that over the last few years Starbucks has over-saturated the market.
Not only have they opened stores on every block but they also have kiosks in many grocery stores. Often there will be a grocery store kiosk and then a full-fledge Starbucks right across the street or even next-door.
Then again perhaps it is just bad karma. After all didn't the Starbucks chain put the average coffee shop owner out of business a few years ago? Now it appears that the giant is feeling the same pain in the pocketbook as the little guy. I would like to feel some sympathy for Starbucks but for some reason I cannot turn on the tears.
It was pure greed that placed Starbucks in this belt-tightening position. Greed, glut and more money were the goals with a store on every block worldwide.
It doesn't take an advanced degree in economics to realize that too much of a good thing is simply too much.
