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Home » Post Item » Starbucks to close 600 US stores

Starbucks to close 600 US stores

July 7, 2008

Starbucks Inc., the coffee restaurant that made waves worldwide is continuing its downtrend since last year.  Seemingly, the changes made by the coffee-giant (naming another CEO aside from its founder/delegating the work) is not doing the trick.  Just recently, it is reported that from its initial plan of  closing 100 U.S. outlets, the target has now been set to 600.  An estimated “12,000 workers will be affected by the closings” according to Valerie O’Neill, Starbucks’ spokesperson.

 

The company points out the slowing U.S. economy as the main culprit of their decline. 

When I first heard about the story about the declining sales of Starbucks I didn’t believe it until I found more and more articles ” singing the same tune. “  According to most of what I’ve read last year, the decline of the company was also because of the growing number of competitors who are offering the more or less the same products say McDonalds, Burger King, and the likes.  Starbucks is feeling the competition as Americans tend to try other fastfood chains who offer cheaper coffee in this trying times.  At the same rate, the 2 fastfood chains mentioned about, have been shifting their focus to their coffee products as they could see substantial returns from it.

 

Even here in the Philippines, more and more chain have been offering coffee in their menu like Jollibee, Dunkin Donuts, and the rest.  I’m not sure how Starbucks is doing in the Philippine market, I would assume it’s more preferred than their counterparts such as Coffee Bean & Tea Leaf and Seattle’s Best.  There seems to be a coffee craze lately.  What do you think, or is it just me? 

Posted by leeangelo at 1:00 am | permalink

Previous Comments

But in the Philippines, people go to Starbucks not for coffee. They go there to be seen.

Posted by j at July 8, 2008, 2:49 pm

hahaha! bad Jj.. But in all fairness, it’s true for the majority. In my case, I go to Starbucks whenever you treat me.hehe!

Posted by leeangelo at July 9, 2008, 12:46 pm

But I can’t help but agree with J. Which is why I doubt there are that many Starbucks in our country that will shut down, even if our economy isn’t all that hot.

Personally, I like Figaro, and Coffee Bean and Tea Leaf better.

Posted by Nightdreamer at July 10, 2008, 2:30 pm

What? I well if not for that article Lee I wouldnt have known that starbucks is losing substantially from their sales to trigger cutdown…welll..im not really a coffee drinker coz i prefer “kapeng barako” as my source of caffeine….but then im still sad coz I have a special someone now that works there…hahaha…ill just pray for that person…and also for starbucks..hihihi…

P.S.
I tried Coffee beans and tea leaf…i still prefer starbucks…hehehe

Posted by K at July 11, 2008, 9:16 pm

BTW, with Figarro…I didnt like it there, coz i have to spend a hundred for a very little cup of cafe macchiato…its tasty though….

Posted by K at July 11, 2008, 9:19 pm

As to what I can see, Starbucks is still sprouting everywhere in the Philippines, check Ayala Avenue there’s almost Starbucks in every corner. And so far I haven’t seen any of their stores closing.

I think The Coffee Bean and Tea Leaf is a lot more expensive than Starbucks which might probably a reason why more people prefer the latter (if they’re even thinking of how much they’re paying for their coffee).

In my case, I’m settling with Nescafe 3-1, Maxwell’s House, and Great Taste..hehe! Btw, the last is a local product by URC which made me try it.

Thanks Nightdreamer and K for your comments on the topic!

Posted by leeangelo at July 13, 2008, 11:59 am

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