Seems that not only small businesses are being effected by this stalled economy and economic downturn.
Starbucks announced today that it plans to shutter up 600 underperforming stores across the country within the next year.
Some investors are worried that the reason for the shut-downs are a direct correlation with the number of stores open and the close proximity to some of these locations.
I can tell you that here in Southern California we seem to have a Starbucks on every single corner of every major street. In fact, I can count four Starbucks within a mile and a half of my house, and two of these are actually drive throughs! One is still in the process of being built or has just been completed-wonder what will happen to this one?
Personally, I’m amazed at the amount of business that these coffee shops do. not that I’m not a fan-I actually love their brewed coffee. It’s strong both in taste and it seems in caffeine, two important elements, in my opinion, when it comes to coffee.
The problem? The cost. I don’t ever buy the drinks that some may call foo-foo-you know, the four dollar a pop lattes. My wallet, and my stomach, can’t handle that price. Add it up over the course of a month, one a day, five days a week, and you can fill up my gas tank.
In today’s economy, that’s reason enough for me to stick wtih the fresh brewed of the day.
At Starbucks, though, the fresh brewed is still a bit steep at $1.60 or so per tall cup. I can head over to 7-11, whose coffee I also love (if you haven’t tried it, do! May sound strange, but they have some great java there) and pay less than this, plus get a free one after every four cups purchased.
I can also buy a bag of Starbucks at the grocery store for about $8 and brew it at home, put it in my travel mug, and drink this when I leave the house.
No, it doesn’t have that same ‘feel’ to it as it does when you run into the store and pick some up, but it sure is a heck of a lot cheaper. Plus, when using your own mug, you’re also helping out the environment (though I do know Starbucks will actually fill up your mug at a reduced cost if you take your own).
Now that we are all taking a hit with rising costs for everyday purchases, I think most of us are beginning to consider the purchases we make and to determine whether or not these are necessary.
So, while I’m sad to see that they will be closing some doors I can also understand the reason.
Much is changing in these hard times. Kind of makes you wonder what is next, doesn’t it?