Does Starbucks Need More Caffeine to Stimulate Sales?
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.
Many people believe that Starbucks opened shops too close to each other. The company reported that seventy percent of the stores affected are less than three years old.
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 perkingAbout Jim Coen
Public Profile
With over 30 years of franchise, marketing, and entrepreneurial experience, Jim Coen brings key skills to any organization that has interest in the franchise channel. Jim is a highly regarded, Sales, Marketing and Management leader who can help organizations build membership and/or expand with proven success building and leadership skills to meet or exceed the goals of the organization. Experienced in developing fast growth start-up companies and leveraging their assets and value proposition to achieve new and lasting relationships in franchising.
Coen took over as President and Chief Operating Officer of the Dunkin' Donuts Independent Franchise Owners (DDIFO,Inc.) on December 1, 2008. Prior to that he had been a director of and the Clerk for the DDIFO board since May, 2008. In 2009 Jim and DDIFO entered into an employment agreement that ran thru November 2012, Jim decided not to seek renewal of that contract.
Coen served as the Vice Chairman of the Board of Directors for the Coalition of Franchisee Associations, a group of franchisee associations leaders that includes: Burger King, Dunkin Donuts, Little Caesars, Meinieke, Super Cuts, Hardees, Subway, Buffalo Wild Wings, and JD Byrider. During his time on the CFA Board, Jim served as Co-Chaor of the Fair Franchising Committee and was one of the crafters of the Universal Franchisee Bill of Rights.
For over 6 years Coen served on the Board of Directors for the New England Franchise Association, an association that is dedicated to sharing best practices to franchise professionals in New England.
For over 20 years Jim worked with Super Coups. Super Coups was a MA based direct mail franchise business to business opportunity that has sinced ceased operations in Massachusetts
Jim successfully marketed franchises for Super Coups as well as Uniglobe Travel Northeast; a travel franchise, Merry Maids; a maid cleaning franchise, other franchise opportunities as well as Emack & Bolio Ice Cream franchise, where he was also a franchisee.
Area of Interest
Franchise Consultant
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