Starbucks Closing 600 stores - What are yuppies to do?
Coffee Crisis? Starbucks Closing 600 Stores
Effects of Economic Woes Hit the Coffee Shop Chain
With the coffee sitting around getting cold at hundreds of Starbucks across the country, the nation’s largest coffee chain announced today it will close nearly 600 stores that were not profitable. As national economic growth grinds to halt, worried consumers have saved their pennies (more likely, $5 bills, if we’re talking about those mocha whip fraps) and visited Starbucks less frequently. In the three months that ended on March 30, Starbucks profits fell 28 percent compared with the same time a year earlier.
“We believe absolutely we are seeing a major impact from [the] economy,” Starbucks CFO Pete Bocian said in a conference call with investment analysts today.
Previously, Starbucks had announced it would close 100 poorly performing stores. But with nearly 600 stores now slated to be closed, it is almost as if Starbucks faces its own version of the collapse in the housing market.