AFP via Yahoo! News
The economy is definitely at the center of the closings, but it's not the whole story. Sure, consumers are pinched, with gas costing more than $4 a gallon and food prices rising. Suddenly, the urge for a midday psychological break and caffeine boost is tempered with the reality that maybe spending $4 on a ton of calories is not the best idea.
But other forces are at play. The coffee chain got big fast, and now has 6,793 stores in the United States as of September 30, The New York Times reports. Quality suffered; 70 percent of the stores that will be closing have been open for fewer than three years. The company made some back-to-its-roots changes when the company's former CEO Howard Schultz reclaimed the helm. The introduction of its Pike Place mild drip-blend coffee has been a hit with customers, but the company is looking at how each store is performing, and not all are doing well.
Ah, but we all need that break the corner Starbucks offers. To take a few minutes to forget about work and all the must-dos. That's what we're buying as we step into the air-conditioned neighborhood coffee house and order a drink made special just for us.
Would you miss your local Starbucks if it were to close, or would you save a ton of bucks or maybe pour them into another local business instead ? Or have you been swearing off the costly stuff for awhile now?
