Friday
Jul042008
No Bucks for Starbucks
Friday, July 4, 2008 at 1:00 AM
Happy 4th of July everyone (and a belated Canada Day to those in Canada)! Hope everyone is going to enjoy their usual patriotic festivities, perhaps even enjoying a nice steak.
I'm not sure how many of you have been following the news as of late, but you may have heard that Starbucks is closing down more than 600 of their stores all across the country. This is an insane number. Think about it this way. If each store has on average 15 employees in it, that's more than 9,000 jobs that are eliminated from the economy. Talk about a significant impact. Granted most of these people are college/high school types, but still, the impact is significant. I think there are two things that can attribute to this downfall.
1) The closing of all of these Starbucks is a reflection of the downturn of our economy. When people are in a pinch financially and have less and less DI, what's the first thing that they are going to cut out? They are most likely going to cut out the non necessities of life, and nothing screams not essential like a 4 dollar latte. I'm just saying. If more and more people are not spending as much money on frivolous things, then it may be a sign that our economy is heading towards a slump.
2) Another reason that all of these Starbucks are closing could be the fact that I don't have to go more than 10 miles to run into another Starbucks. When you have one Starbucks competing against another Starbucks, chances are that you have over saturated the marketplace. Perhaps this will be a good thing for them, helping them not eat each other's stores alive. Caribou, I think you can learn a valuable lesson from this as well. In Minnesota, you only have to go 5 miles to find another Caribou. You're going to be next on the closing list if you don't get your act together as well.
There's nothing more patrotic or uplifting than talking about a good old fashioned economic crisis, huh? I hope everyone is able to get out this weekend and go enjoy themselves on a lake or something. Happy 4th!
I'm not sure how many of you have been following the news as of late, but you may have heard that Starbucks is closing down more than 600 of their stores all across the country. This is an insane number. Think about it this way. If each store has on average 15 employees in it, that's more than 9,000 jobs that are eliminated from the economy. Talk about a significant impact. Granted most of these people are college/high school types, but still, the impact is significant. I think there are two things that can attribute to this downfall.
1) The closing of all of these Starbucks is a reflection of the downturn of our economy. When people are in a pinch financially and have less and less DI, what's the first thing that they are going to cut out? They are most likely going to cut out the non necessities of life, and nothing screams not essential like a 4 dollar latte. I'm just saying. If more and more people are not spending as much money on frivolous things, then it may be a sign that our economy is heading towards a slump.
2) Another reason that all of these Starbucks are closing could be the fact that I don't have to go more than 10 miles to run into another Starbucks. When you have one Starbucks competing against another Starbucks, chances are that you have over saturated the marketplace. Perhaps this will be a good thing for them, helping them not eat each other's stores alive. Caribou, I think you can learn a valuable lesson from this as well. In Minnesota, you only have to go 5 miles to find another Caribou. You're going to be next on the closing list if you don't get your act together as well.
There's nothing more patrotic or uplifting than talking about a good old fashioned economic crisis, huh? I hope everyone is able to get out this weekend and go enjoy themselves on a lake or something. Happy 4th!
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