Starbucks To Close 600 U.S. Stores

SEATTLE — Starbucks Corp. has announced it's closing 600 underperforming stores in the United States.

The Seattle-based premium coffee company also announced Tuesday it expects to open fewer than 200 new company-operated stores in the United States in fiscal 2009.

The company says it will try to place workers from closed stores in remaining Starbucks.

Comments

[alieninvader]

I can see it. I used to be a triple soy latte a day regular. Now if I have anything, it's typically straight coffee or more likely tea, for less than half the cost. I am also lucky enough to live in Denver, where there might even be more independents than Starbucks.

[alieninvader]

I've also lost about 5 lbs. Hmmm.

[StevieRae]

With employee benefit costs (approx. 40%) exceeding the cost of their coffee beans, Starbucks may be forced to re-evaluate more than under producing stores. Here's a prime example of how health costs are putting more companies in financial jeopardy.

Any doubters about this health care system crisis should pay attention to what's going to happen to GM and Chrysler. Health care costs, in additional to some very dumb strategic mistakes will impact these American symbols of our past manufacturing might in ways we never imagined..

[patmancando]

That is one of the reasons I passionately support Hillary...­..........­.....she is the only one with the passion to get a health care system in place. She learned much from the mistakes she made in the 90s, and she really cares about it. The cost of health care is driving companies to go abroad. GM, Ford and Chrysler all are down......­.....and there will be massive layoffs. Watching this health cost rise because of greed and seeing the effect it has upon the jobs in this country has convinced me that those who stood in Hillary's way in the 90's are ready to deal now. The increase in insured numbers should bring the individual costs down. If you were a company wouldn't you want to vie for over 6 million policy holders. Yes, Hill would have gotten it done......­.she had the passion.

[alieninvader]

Hillary is one of the largest beneficiaries of insurance company lobbyist money in the senate. She sold her soul.

[AnnoyedCanuck]

I've seen GM, Ford and Chrysler described as health care providers who also manufacture cars (and lose money in both ventures). Starbucks is becoming a health care provider with an unprofitable sideline in overpriced coffee.

Starbucks continues to grow in Canada. Corporations are not forced to bear an unreasonable share of health care costs. These are borne by all taxpayers, and our single-payer system delivers medical care to all with minimal overhead.

[TheIndependenceParty]

Good Call by Starbucks, ... Sorry, America, but we are in for a serious financial dive. My favorite find when I was assigned to a hospital in Singapore was to find a Starbucks in the lobby. The barristas there were my best friends. They are a marvelous business, ... and the best coffee around for a regular cup of Jo. If we skipped the Espressos and Capuccinos, they'd have kept the branches open to weather the storm. Ain't their "Cup of Tea", of course.

Bet by the end of this "non-recession" we'll be ordering Horn and Hardarts in an automat again, and selling pencils and apples, ... and anything else the RepublicRats don't outlaw before they lose the election.

[davesideas]

I agree; I can't figure out why so many are in denial about the depression we're in the process of entering..­.I don't mean to be a doom sayer, but the American economy is in dire straits. I'm still talking to people (who are mostly Republicans) that are saying that this is the standard pre-election economic adjustment­...complet­e denial...

[wdw101]

people are fearful of the change left in their pocket after Hussein's implements his socialized government

[mamacat]

I noticed the other day that both of the Chevy dealers in my area have closed down. I haven't seen anything in the news about that, and I think that it is quite a bit more newsworthy.

[SouthpawSass]

$3-$4 for a cup of coffee? I don't care what fancy schmancy name they want to give it, it's still a cup of coffee...

[whitewaterwillie]

Remember to grow (or in this case, brew) your own. If you buy some really nice fair-trade organic coffee at $10/pound you can save $54 when compared to getting a getting a tall at Starbucks. That breaks down to about 31 cents/cup.

[huffdog]

That's a false and ridiculous statement SouthpawSass. I can get a cup of crappy coffee from Dunkin Donuts or McDonald's for $1.60 or a great cup from Starbucks for $1.90.

[Dan909]

Will they replace the independent coffee houses that each of those stores drove out of business by moving in next door or across the street?

[VivaZapata]

only if they have free WIFI and folk singers and/or jazz trios.

[Splinter]

Actually "independent coffee houses" didn't really exist as an industy in the US until Starbucks revolutionized the concept in the 80s and 90s. And Starbucks has done more to promote sustainable farming practices in developing countries than any other retail company. But I know how much the far left hand wringers love to hate a successful business model.

[Dan909]

That's like saying hamburger stands didn't exist until McDonald's came along. Just because you weren't aware of them doesn't mean they weren't there.

It's worth noting, too, that Starbucks adopted sound environmental practices under pressure from the public, left and right handed.

[foolchild0]

You have no idea what you're talking about. Coffee houses have been a staple for a long, long time. Starbucks started the trend towards gourmet coffee, true, but coffee houses have always been around and as soon as Starbucks is done collapsing will continue to do so.

[Marlyn]

Wow. They just opened 3 new stores in my neighborhood. And the odd thing is that they are always busy.

[KarateKid]

Four in my neighborhood, within 5 miles of my house. There ARE some real crappy ones and I hope those are the ones they are closing down. They also need to do a better job of training people to make a proper coffee.

[GalaxieGal]

It had to happen. For heaven's sake there are 5 Starbucks within 1 mile of my house (2 Tea Leaf and 1 Peet's too). It seemed like they lost their mind and were just putting one anywhere they could lease a space.

[BillN]

Always busy. Kind of unusual for a business that "everybody" hates, isn't it? You can't always believe everything you read on HuffPo.

[philinmedford]

wait a minute....­..you can actually believe ANYTHING you read on here? *dazed look*

[ejay579]

Who said anything about "everybody" hates Starbucks?

[patmancando]

You must have a lot of O's supporters in your neighborho­od.?

[Vyvjala]

Over priced and over rated, nothing but stump water.....­..........­.......

[hey0there]

I really am not surprised. Pretty much every mainstream news piece and blog article written this year about how to save costs in your budget specifically mentions cutting out the daily coffeeshop trips.. countless, countless, articles saying this, i can see sales plunging like they have..

[hopefull2008]

what will happen to the baristas ...

[MajorKong]

Maybe opening a Starbucks across the street from another Starbucks wasn't the best business plan?

[gascelebrations]

It was always my favorite scene in "Shrek".

[TheOtherMaven]

Opening Starbuckses in the home turf of the Daily Grind wasn't the best business plan either. Starbucks should get out of Winchester, VA and stop fooling itself that it can "stomp" its "upstart" rival.

[BigSid]

NO WORRIES

There's still a Starbucks on every other corner.

[provgrays]

Five dollar lattes were obscene even in the best of times.

[KarateKid]

Not to mention undertrained workers who could give a rip WHAT they made.

[aristippe]

LOL

[philinmedford]

No big deal....ob­viously their closing all the stores for a day in Feb to "restructure" how they did business didn't solve their problems. Problems include selling nasty coffee for $5. Waiting in line for the privilage to get ripped off. Major competition from McDonalds and the like.

I'd always laugh when people moaned about the price of gas but bought two cups of coffee for $8.

So much for the "me me me generation"

[GeeBee]

The largest size coffee costs me under $2 at my local Starbucks. Are you only buying it at the airport, where it's the only choice? Or are you one of those yuppie idiots using ten words to order your drink?

[philinmedford]

Heck, I've never actually drank any of their coffee. I understand though that the menu is in some weird "other" language.

I have seen the prices though on the wall in the grocery store that has a kiosk there.

Curious, what did I say in my post that led you to believe that I ordered coffee there?

[HotATL]

This is the down side to globalization. When people lose tech jobs and have to take low paying service jobs (if they get a job at all), they can’t afford luxuries anymore. Maybe they can open some Starbucks in India and China.

[SLCPunk]

Yep, right on.

The downside of globalization is a closed Starbucks.

Do you read what you write or are you just being sarcastic?

[HotATL]

Yes I do. The downside of globalization will be the close of a lot of small business. You couldn't get that from what I wote? Are, are you just being sarcastic?

[whitewaterwillie]

I really have a love-hate relationship with S'bucks. It does treat the employees well including health benefits for part time employees which is almost unheard of. On the other hand, if they are unable to buy out a company, they'll put a Starbucks next door. They tried pull this tactic with Peets about 10 years ago.

However, I agree with several posters that the $$$ you put into fru-fru drinks in a coffee shop is money best saved.

[aristippe]

I'd be curious to know the compounded interest of a five dollar starbuck drink every day for a year over the course of ten years