Starbucks Closures!

User Forum Topic
Submitted by Portlock on July 1, 2008 - 4:36pm

The Apocalypse is upon us!

The Seattle coffee chain has been feeling the pinch of a tightening economy:

http://dailybriefing.blogs.fortune.cnn.c...

Submitted by bsrsharma on July 1, 2008 - 4:47pm.

Now if only Krispy Kreme joins in, we may see improved health!

Submitted by meadandale on July 1, 2008 - 4:48pm.

I hardly think that the economy is as much to blame as the fact that a) their coffee sucks and b) they are probably one of the only businesses I know that will open competing stores right across the street from each other.

I mean, I know people are lazy and all but does it really make sense to open the damn things a block apart? Are people really incapable of walking a few blocks for coffee?

Submitted by bsrsharma on July 1, 2008 - 5:07pm.

only businesses I know that will open competing stores right across the street from each other.

Surely you have seen 2, 3 and sometimes even 4 gas stations at intersections - though competing brands. I think we have way too much over-retailing. Can anyone count the number of Walmarts in Oceanside - is it 3 or 4? All point to coming Commercial Real estate crash as the malls go dark.

Submitted by Noob on July 1, 2008 - 5:08pm.

Do we need any further proof that we are in a recession? Soccer Mom's and Dad's across the USA are forgoing their daily $4.00 caffeine fix.

Submitted by meadandale on July 1, 2008 - 6:03pm.

bsrsharma wrote:
only businesses I know that will open competing stores right across the street from each other.

Surely you have seen 2, 3 and sometimes even 4 gas stations at intersections - though competing brands.

That's the key difference, COMPETING BRANDS. You wouldn't see Shell open gas stations across the street from each other.

Submitted by TuVu on July 1, 2008 - 7:01pm.

I think, along with the overbuilding (we could easily walk to three SBs in our old neighborhood), what is happening is what usually happens. Just like having a cell phone used to be a status symbol, people thought that buying a Starbucks coffee announced, "Hey, I'm not only a coffee gourmet, I can afford it!" Once everyone did it, it lost its glamour. Just a fad. I never fell for it, but I certainly fell for similar things in my 20s/30s, when appearances are everything, or so it seems.

My drug of choice in the mornings is Diet Coke. I drink it for the caf, not the lack of calories, because my parents brought us up on hideous Shasta diet drinks and -- arghhh! -- Tab, and regular soft drinks are too sweet for me.

Submitted by mixxalot on July 1, 2008 - 10:04pm.

Starbucks had decent coffee once upon a time like 15 years ago when they actually made fresh ground coffee from beans. I heard that they use a coffee concentrate now and it stinks! Not even real coffee.

I buy my organic espresso beans from People's and make fresh lattes for maybe 99 cents per latte compared to $5 lattes at overpriced Starbucks.

Besides its better to make my own and no wait or baristas to deal with.

Submitted by pabloesqobar on July 1, 2008 - 10:05pm.

I'm guessing their cut-backs didn't come about solely because of the rise in gas prices, but...

Over-priced coffee is an unnecessary luxury that anyone can do without if they wish to cut corners. Personally I make my own coffee in the morning because paying somebody to make me a cup rubs me the wrong way. Recently, with the increase in gas prices I started bringing my own lunch to work to offset the additional dough I spend on gas. For me, that has more than offset what I spend on gas.

I'm always looking for little ways to curb my spending without cramping my lifestyle. There's probably lots of people doing the same. I have to buy gas, but I don't have to spend $4.00 for a cup of coffee or $10.00 on lunch. I'm sure there's more things I can do to save money. Consumers are tightening their belts and it's having an effect on certain industries.

Submitted by meadandale on July 1, 2008 - 10:40pm.

pabloesqobar wrote:
Personally I make my own coffee in the morning because paying somebody to make me a cup rubs me the wrong way.

Especially when a large coffee almost anywhere like starbucks or a local indie is going to run about $2.

I buy fresh whole beans locally for both espresso and drip. I can make a whole pot for less than $2 so I can drink a few cups at home and then take a cup to go in the car.

Submitted by Portlock on July 1, 2008 - 10:45pm.

What is Starbucks a symbol of?

As PabloE mentioned, a Starbucks coffee is one of the first luxury items people can forgo when money’s tight. $4 dollar coffee is a luxury, plain and simple.

But I’m hoping a Starbucks contraction is more than a sign of a drop in consumer spending, more than a change in spending habits. I want it to mark the beginning of a separation from the overly materialistic, overly consumptive culture we live in – exemplified when we see 2, 3 green and white Starbucks signs within 2 blocks of each other.

Is that just wishful thinking, or could this really suggest a return to modest lifestyles where people really live within their means?

Submitted by Aecetia on July 1, 2008 - 11:01pm.

I do my own yard work. That saves a lot of money and is very satisfying. There are a lot of ways to cut back if you compare yourself to your parents life style it is obvious that many of us are pampered compared to our parents and grandparents. I think one of the reasons they were the greatest generation (grandparents) was because they did not whine about their lot in life, but generally made the best of it. I also appreciate what great recyclers my parents and grandparents were. They did not waste anything. I am not one to think that a severe economic downturn will be a good thing, but I believe we can all learn to be more conservative in some areas of our lives.

Submitted by poorsaver on July 1, 2008 - 11:15pm.

Stock is way up after hours trading. Short sighted traders not seeing the big picture. Cutting 600 stores is obviously bad news for the economy, factoring in job losses and such.

Submitted by nostradamus on July 1, 2008 - 11:41pm.

poorsaver wrote:
Stock is way up after hours trading. Short sighted traders not seeing the big picture. Cutting 600 stores is obviously bad news for the economy, factoring in job losses and such.

So wait a bit then short it.

Submitted by Brutus on July 2, 2008 - 4:09am.

I wish I could make a cup of coffee that tastes as good as Starbucks. I've tried. I can't. Everything else (except Peet's and Seattle's Best) tastes like hot dishwater, especially drunken Donuts.
Starbucks: easily the best cup you can buy. And I never spend $4 on a cup of coffee. That's for Volvo-driving, Caramel Latte-drinking, Obama-voting, "not on our watch," UN loving, yuppies.
You know: my friends.

Submitted by meadandale on July 2, 2008 - 8:42am.

Brutus wrote:
I wish I could make a cup of coffee that tastes as good as Starbucks. I've tried. I can't. Everything else (except Peet's and Seattle's Best) tastes like hot dishwater, especially drunken Donuts.
Starbucks: easily the best cup you can buy. And I never spend $4 on a cup of coffee. That's for Volvo-driving, Caramel Latte-drinking, Obama-voting, "not on our watch," UN loving, yuppies.
You know: my friends.

Starbucks is horrible coffee. I could run dirty dishwater through my coffee maker and have it taste better.

Submitted by Ex-SD on July 2, 2008 - 8:59am.

No big surprise. The Chairman/CEO of Starbucks has been trying to blame his company's worsening performance on the CEO that he just fired (along with other excuses) but the real problem is he is one of these "balls to the wall" type of CEO's that has no brakes and thinks that he is smarter than everyone else. I've been expecting this to happen for the last year.

I have an Elektra, manual pump, espresso machine that I use every morning. I mix 50/50 espresso/milk, a little honey and chocolate and bingo......a fantastic coffee drink. Starbucks does not even come close to competing with my home brew.

I did stop at McDonalds a couple of weeks ago to try one of their new, coffee drinks and it wasn't bad; much better and cheaper than Starbucks.

Submitted by pbnative on July 2, 2008 - 9:35am.

There is a kiosk SB inside our Vons AND a walk-in SB in the same plaza. Not a block away, yards away. That has always seemed bizarre to me. But I much prefer to go to the mom-and-pop coffee shops to support a local biz and get better coffee.

Submitted by pabloesqobar on July 2, 2008 - 10:38am.

I tend to agree that Starbucks has some tasty coffee. For me, tho, I just need one plain cup of coffee in the morning. The only time my coffee beats Starbucks is on Sunday mornings: That's when I add a splash of Baileys.

Submitted by nostradamus on July 2, 2008 - 11:14am.

I used to grab a cuppa at starbucks when I worked in the same building... Now I'm back to brewing at home (after the recommendations a while back by other posters). I buy Peet's beans and grind them myself.

I do like Starbuck's coffee and I also like their worldwide non-smoking policy. Those of you who have been to Tokyo or Shanghai can appreciate what a haven a non-smoking environment can be, especially when they provide wireless internet.

Lastly you can't gripe about a company that made billion$ selling bean juice. Exemplary capitalism. Pass steam through a machine, add flavor, make employees feel like "partners" by dangling the chance to get rich through stock, create a fad... Genius. You can't blame them for opening up so many stores. I mean, people still bought the product. I would keep opening stores as well if every store had a guaranteed customer base as Starbucks once did.

Submitted by JustLurking on July 2, 2008 - 12:57pm.

This is my new favorite coffee:

http://www.cafevirtuoso.com/Home.html

We bought a bag of beans from them a few weeks ago at the La Jolla Farmer's market and there is no turning back. Really fabulous coffee. My favorite is the Cove Blend that they have at the Farmer's Market, but for some reason not on the website.