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600 Starbucks Stores Closing, They Really Are Not a Franchise

Friday, July 11 2008

 {Cross-Posted at The Franchise King Blog}
Coffee
drinkers seem to have lots of different opinions about the apparent financial problems that Starbucks is experiencing. Some of these opinions appear to be caffeinated, while others are seriously decaffeinated...

Most people think that Starbucks is a franchise. It isn't. From their corporate website:

"Starbucks does not franchise operations and has no plans to franchise in the foreseeable future.
In North America, the majority of our stores are Company-operated. As an exception, Starbucks may enter into licensing arrangements with companies who provide access to real estate which would otherwise be unavailable such as airport locations, national grocery chains, major food services corporations, college and university campuses and hospitals.
"

There seems to be two distinct groups coffee lovers in the USA:

Group #1- The Caffeinated Group-
The caffeinated group loves the Starbucks concept. The dark wood, the rich green colors that seem to permeate the storefront operations, and the strong, and slightly burnt tasting coffee. They feel that Starbucks really created something..a coffee culture, if you will, and strongly defend their $3.85 Lattes.

Group #2-The Decaffeinated Group
The decaffeinated group totally opposes anything that reeks of a cookie cutter type operation, whether they be company owned storefronts like Starbucks, or franchised operations, like the Daily Grind. For these coffee aficionados, a small town feel is the key. Pricing is important also, but not the end all, when it comes to deciding where to hang out, and drink java. A small town like coffee shop.

In my franchise travels the past couple of weeks, I have been asked about my feelings concerning the closing of 600 Starbucks Cafe's. I answered the questions as Unexcitedly as they were asked.
My answer:

"And?????"

Let's laugh together. OK?

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