- Front Page
- Biz Tools
Starbucks recently announced that it would shutter 600 of its more than 7,000 stores (8%) nationwide, shedding up to 12,000 full and part-time jobs. The price of this stock reached a new 52-week low of $15.62 on July 1st.
The company has yet to disclose which stores will close.
There is no doubt recession fears have not helped the company, but I believe Starbucks' decision to close stores has more to do with competitive pressures other than just the economy.
Getting rid of stores that were cannibalizing each other is a good financial move but they may need more to prevent things from going bad to worse.
Troubles at Starbucks come at a time that Dunkin' Donuts has been aggressively expanding and McDonald's has introduced low-cost premium coffee.See the Let's Talk Franchising post on: Franchise coffee sales need some perking