Even coffee can’t get a break in the new economic climate. I had thought when Obama took the Oath of Office everything would be better, but it looks like Starbucks is still in trouble. Last quarter profits fell nearly 70% — wow, that’s a lot of people not getting overpriced fraps – and the company announced 300 more stores will be closing.
The total planned store closures stands at 977, with 200 US and 100 overseas being added to the list this week. According to Market Watch all of them should be shuttered by September of this year.
The problem is a lot more layered than just the economic problems, as Starbucks has been on a sales decline for five straight quarters. Sure a lot of the business is going to McDonalds, which offers a higher end coffee than the usual swill, or Dunkin Donuts. But let’s be honest. Starbucks was once a decent place to get gourmet style coffee, but inflated prices and subpar corporate product have turned the store into a joke. The only thing I order at Starbucks anymore is a chai latte. I’d much prefer to get my coffee fix at home with fresh ground beans I brew myself.
