The business stories that matter, by Fortune's Colin Barr
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July 1, 2008, 4:40 pm

Starbucks has a bitter plan

By Scott Moritz

Starbucks (SBUX) can’t catch a break. The coffee retailer says it will close 600 stores, about 8.5% of its 7,100 total stores, an expansion of the 100-store closing target it had previously announced.

The Seattle coffee chain has been feeling the pinch of a tightening economy. In February, the company fired 600 employees and conducted a in-store retraining program to try and revive the Starbuck Experience, as CEO Howard Schultz has called it.

Starbucks says it is trying to cull unprofitable stores from the franchise and expects to book $200 million of asset write-offs in the third quarter related to the closings. Starbucks shares are down 40% over the past year.

In April, when Starbucks warned that profits for the first quarter would be 6 cents below the 21-cents-per-share Wall Street target, Schultz said the turnaround plan wasn’t taking hold.

“The current economic environment is the weakest in our company’s history, marked by lower home values, and rising costs for energy, food and other products that are directly impacting our customers,” Schultz said at the time. Schultz returned as CEO in January, replacing Jim Donald. As a story by Fortune’s David Stires pointed out, Schultz is trying to undo the exuberant expansion effort of his predecessor Donald who wanted to triple the number of stores to 40,000 with half in the U.S. and the rest abroad.

Hmmm, I’m not the only one who thinks there’s something hinky about Starbucks “formula” for determining which stores get the axe.

Check these: “Strange Brew: The Starbucks Closings - The Kill List” at

http://blog.myspace.com/blackjack4fun
and http://www.bloggingstocks.com/2008/07/14/starbucks-howard-schultz-wake-up-youre-closing-the-wrong-sto/

Posted By S. D. al-Zentari, Dallas, Texas : July 20, 2008 5:05 pm

The biggest problem with a tightening economy is the manner in which Corporations react. Suddenly, cutting costs is all that matters. This is only a short-term solution. I blogged on why Starbucks should be ‘innovating coffee’ more seriously now.

Posted By Lois Peters, Troy, NY : July 10, 2008 10:16 pm

My husband is a manager for Starbucks. I do not frequent his store, or any other Starbucks~I’m just not a huge fan. But, I do know that Starbucks creates more jobs and has benefits that are really top notch. If you don’t like how much their coffee is, don’t buy it. But, in this economy, allow them to grow more, because it just means more people will have decent jobs with health benefits.

Posted By Tulsa, OK : July 10, 2008 3:04 pm

I still love Starbucks! Say what you want. if you don’t like it, don’t go there.

I “get” the experience. Where else can you get peace and quiet with comfortable furniture and clean restrooms — AND good coffee with free refills. For a buck + 55 cents, I can read or do Sudoku as long as I want with a great cup of java and good music. If I don’t want to spend that much, I can get the smaller size — yes, there IS one.

If you don’t understand the “experience” ask the Chinese. They told Howard Schultz NOT to adapt their Starbucks stores to the Chinese culture because they wanted the exact “experience” Americans were getting.

None of the other places people mentioned here are all that inviting. No way would I choose to drink coffee at any of them. Just not all that inviting or attractive.

Starbucks is also one of the top employers in the country. Students I know love working there as they get bennies just part-time.

Jim is out and Howard is back. Expect good things! Starbucks will prevail. BTW, now that the price is down, go buy some shares!

Posted By Nancy Barker, Gresham, Oregon : July 8, 2008 4:15 pm

I’m not a coffee drinker. I stumbled across this thread via someone’s blog, read a bunch of it and had a few thoughts:
1. I had no idea that people were so passionate about coffee and its distribution.
2. Some of you are pretty witty.
3. Many of you struggle mightily with English grammar, syntax and spelling. Coffee-jangled nerves, perhaps? (Just kidding, really. Don’t break out the pitchforks and torches.)
4. There seems to be a paucity of marketing- and business savvy here. Every entrepreneur’s goal is to have pricing power, i.e., to be able to charge a premium. Every premium brand is supported by customers who knowingly and willingly pay a premium vs. alternative product/service offerings, usually for emotional reasons that work for them. Changes in macroeconomic conditions often cause a percentage of customers at the bottom of the market segment to decide that they’re no longer willing to indulge the price premium; they drop out of the market. This is as true of NYC condos as it is of coffee.
5. All successful product innovation attracts competitors, a percentage of whom attempt to compete on price (”just as good for less money”). Some customers decide that it is just as good and choose to pay less. Others perceive that the original remains superior for other reasons. Over time, however, the maturing product category declines in overall pricing power, which eventually affects those at the top of the price curve, too.
6. If I’m writing this, I have way too much time on my hands.

Posted By Mike, Las Vegas NV : July 8, 2008 12:10 pm

The reason that Starbucks is struggling is because it is a trendy place. A majority of people who go Starbucks go there so that they can be seen there or with the Starbucks coffee cup. Just like any other trend, it is starting to fade out. Starbucks is past its peak.

Posted By Matt, Bethlehem, PA : July 7, 2008 4:47 pm

you know what i am a barista for starbucks. I have recieved a very good oppurtunity, and Im sick of people running it down. First of all starbucks started out independent too. They grew for a reason havent any of you posting nasty comments ever taken economics. yeah they may be closing mom and pop businesses but thats business. Thats the way it works people. and like i said starbucks started out as 1 store. Second of all the stores being similar is to provide people consistency I think its pretty obvious from comments about businesses closing (mom and pop) that people cant handle change welcome to America . Starbucks was someones American dream you dont have to like it, you dont have to drink it, but you do need to get over it. I am proud of my company I havented been treated near as good at aany other employer. So put that in your cup and drink it…

Posted By Tiffany Williams Lexington, KY : July 7, 2008 12:11 pm

I have an interview with starbucks on Monday even with this surpising news Im still taking my chances. A blade of grass cut back has a chance of returning even stronger.

Posted By Inari, Richmond, Virginia : July 4, 2008 9:39 pm

Someone mentioned that Starbuck’s has predatory advertising. I disagree. The only ads which I have come across have been a few magazine ads. Neither of which asked the reader to go to their local Starbuck’s. One was for a new chocolate line available in your grocer’s candy aisle. The other ad was for Verona coffee, which can be purchased at Rite-Aid, WalMart ot Target as well as grocery stores. The ad wanted you to buy a bag and brew it at home. How does that qualify as predatory!?

Posted By Brooklyn, NY : July 4, 2008 8:45 pm

I work for Barnes & Noble Cafe, we serve Satrbuck’s coffee. We are not Starbuck’s, their individual stores are our competition. I think Starbuck’s killed itself having a shop on every corner. I feel for the employees whose jobs are threatened. I am protected, for now under Barnes and Noble.The economy is bad no matter what business you are in. It’s not right that people can get the coffee in the Hospital cafeterias now which do not uphold Starbuck’s standards of one hour hold time to sell the freshest coffee. Good Luck to all Baristas out there. It shouldn’t be a war. We all value our jobs and our coffee.Starbuck’s does a lot of things right as mentioned in other comments. Coffee bars are fun. Stop making it into a bad experience. My store manager asked why our sale of Fraps. was down last month. DUH! Everyone is tightening their belts. I still see people spending money on non-essential items. It’s up to the individual where they want to spend their money. Spend your time and energy on more important issues. Life is too short to fight over coffee. Do not be ridiculous. Every person has different taste and pocketbook size to pay for them. Have more respect for those around you. Please have respect for those serving you and within earshot of you when you are on your cell phones.

Posted By Poughkeepsie, NY : July 4, 2008 2:44 pm

this stock is laughable and so is the company, baristas start looking for another job because this company is kaput

8.5% today another 8.5% a few months from now, recession does not equal more starbux - it equals much less

Posted By Joe, Cranston RI : July 4, 2008 9:01 am

Ok first i would like to say than Starbuck coffee price i’snt that high i am myself owner of an independant coffee shop and what you people DO NOT REALIZE its not only water and coffee beans i explain and after i don’t want to read comment about the fact than its only water and beans. ok there it goes.

1- Cup
2- Cup holder (so you people dont burn yourself)
3- the Cream in the coffee witch is more expensive than milk
4- the sugar (for your information each package of splenda than plople take are 3 cents each)
5-the Lid to put on your cup.
6-The electricity that cost to leave these machine on all the time.

i sell my small cup of Hot coffee $1.60 and look how it works.

coffee beens for 1 cup = $0.40
cup= $0.12
sugar= (1 splenda) = $0.03
Cream= $0.20
Lid= $0.05
cup holder $0.05
TOTAL= $0.85 it cost me $0.85 for a small cup and that is the basic dont include if people want extra sugar or extra cream and that doesnt cover the electricity that it takes and the employees making it for you well guess what!! they need to get pay at the end of the week and i offer free WIFI so at the end i make about $0.15 profit on a cup of coffee !!
if people can’t get it and they are not willing to pay a little more to have a coffee that is drinkable well they can stay home and make themself an instant coffee.
i do not go to STARBUCK often but i do go whenever i want a coffee and i am not close to my own store and i know than they are not overpriced because i operate the same type of business and i know the cost. And Starbuck for what is worth McDonald coffee yes it can be good if they just brewed it but if not ewww they let the coffee sit on the burner turned on any good barista know that after 15 minutes the coffee burns and its not good. Dunking do the same and even worst they use their burned coffee and make it iced coffee and it makes it taste like coffee grind. and i am not talking about the Dunkin D food witch is absolutly disgusting. I personnaly like Starbuck better. I have to admit than i went to some Starbuck where the service was horrible but blame in on the people that served you not on the company itself.
thats all i had to say !!!!

Posted By Yannick Dupuis, Johnston Rhode Island : July 3, 2008 5:01 pm

The decision by Starbucks to scale back comes at no surprise given the monopolistically competitive market and economic downturn. Starbucks successfully used market characteristics and consumer behavior to its advantage over the years. But the slump has a reverberating effect on consumers’ price sensitivity across virtually all goods and services, as many are switching away from luxury items to inferior goods, as I’ve discussed on http://peppercomblog.typepad.com/ in greater detail.

Posted By Milos Sugovic - Peppercom, NYC, NY : July 3, 2008 1:19 pm

sigh…okay, I’m back for Round Two.

Adrian from St.Louis - there are 7200 Starbucks in the U.S., stop throwing random figures out, like 40,000.

Darren from Richmond - sure, Starbucks coffee doesn’t appeal to everyone, that’s for sure; we come back to the ‘vanilla/chocolate’ theme when it comes to differences in taste. Re: the wi-fi being free - Starbucks now offers 2hrs. free wi-fi use every day for customers with a registered Starbucks Card. It’s very simple to do, for those interested - just wanted to bring that to everyone’s attention. It used to be only T-Mobile, which required either a subscription, or temporary pass to use; now AT&T is available as well, for registered SBUX Card users. About the price of the coffee, I’ll reiterate what I said yesterday - if you’re talking about ’standard’ brewed coffee, Starbucks pricing is on par with competitors - it’s the lattes, cappuccinos and frappuccinos that begin to add up. As for the customer service you received, I’m sorry that it wasn’t very good - Starbucks is often known for our high level of customer service, but as I mentioned yesterday, there are definitely exceptions to the rule.

Sam from K.C. - You bring up some good stuff here. Something else that gets overlooked or goes unnoticed, more likely is the high level of community involvement and corporate social responsibility that Starbucks has. They pay top dollar for coffee beans that other coffee companies undercut in pricing, they support and nurture small coffee farmers, and constantly strive to bring the best possible cup of coffee/latte/cappuccino to our customers ALL of the time.

EJ from NY,NY - stop it with an espresso costing more than a gallon of gas. It’s easy to fool someone who doesn’t know any better into thinking this is true, when in reality an espresso(most commonly a double, is two shot glasses worth of coffee) in NYC probably goes for about $2.25 or so. So unless gas is significantly cheaper in NYC than we’ve been led to believe, either you’re lying, or you’re not entirely sure what’s what, and you’re just trying to mislead people with your statement. FAIL.

Rich in Santa Cruz - Predatory marketing? How much Starbucks advertising do you see? Starbucks RARELY has a television ad campaign, and in most cases - not all - it’s for the bottled/canned beverages, not the stores. Dunkin’ Donuts - now there’s a better example of predatory marketing. You say that Starbucks offers a “cookie cutter experience, the world over” - I guess to a cynic, that’s what a comfortable, friendly environment is? That’s a shame for you. Another reiteration on my part from my post yesterday - Starbucks, in my experience peacefully coexists with other coffee shops, as opposed to the common misconception of ‘The Big Guys Coming In And Forcing Out The Little Mom-And-Pop Coffee Shops’.

John from MO - growers are growers, beans are beans? I suppose if you’ve never had the good fortune to taste a very wide array of coffees from all of the growing regions in the world, as well as learn about growers, growing regions, methods, processing, roasting, etc., then yeah - I suppose it might all seem the same. I guess things would be a lot easier in a sense if that were the case. We could just have ‘COFFEE’.

Posted By SBUX Barista, Warrington, PA : July 3, 2008 8:43 am

You know what…think what you will about Starbucks….I don’t really care. For every one of you standing up on your little soapbox, whining about independent coffeehouses, there are four teenagers ordering frappuccinos. So you think Starbucks is getting what it deserves?

Tell that to the 12,000 of us loyal, friendly, skilled workers who are about to lose our jobs. Would you tell someone who was laid off from Ford that they deserved it? I did nothing to deserve to potentially lose my job. I go to work everyday, I put up with you talking on your cell phones, treating me with no respect, and looking down upon me because I work in corporate coffee, and I do it with a smile, all the while making sure you get exactly what you want.

But it’s good to know that everyone is so kind and considerate about it. Enjoy your gas station coffee, you jerks.

Posted By Your friendly neighborhood barista, Rochester, MI : July 2, 2008 10:34 pm

People like Dunkin’ Donuts coffee over Starbucks? Yeesh. That stuff tastes like ground tires. Definitely the one of the worst cups of coffee I’ve ever had. Personally I like Starbucks but even McDonald’s coffee over DD. I love Starbucks whole bean and making it how I like it since I make it better than they do. My favorites whole bean coffess are Starbucks, 8 o’clock, and Montecristo.

Starbucks is bombing because they had a shop across from another shop across from another shop. Plus even at $2 a cup, even for me it’s made poorly by being too strong. For a regular cup of coffee I’d much rather pick up some McD’s at $1 a cup.

Posted By Steve, Louisville KY : July 2, 2008 7:22 pm

Where else can you play the game “What Starbucks am I calling from”. You call your best friend from any Starbucks in the world. To prove it, he talks to an associate about the location and coffee that you have ordered. Try it. It can be a lot of fun.

What about all the coffee huts that are popping up in all the cities, small towns, Military posts, hospitals and malls in the United. States?. I think that all their combined grassroots markets are squeezing out Starbucks high prise coffee for just as good coffee for a lower price. By the way growers are growers, beans are beans and Seattle Coffee Company and Starbusk are the same coffee company. One just charges more for their coffee than the other.

Posted By John from Missouri : July 2, 2008 3:02 pm

Firstly, I congratulate Starbucks Corporation, for offering medical benefits to their employees! But I do not visit them. When they opened a store directly across from our local roaster/cafe, it appeared to be a direct attack! Predatory marketing, trying to steal customers, rather than develop their own market in an area lacking a cafe. So now I am a fanatic about searching a locally owned independent cafe, where ever I am. I am not so timid as to require a cookie-cutter experience, the world over. Support the Independents!

Posted By Rich, Santa Cruz, California : July 2, 2008 1:06 pm

Coming from New York, where gas prices average more than a large portion of the country, let’s be honest- a SBUX espresso costs MORE than a gallon of gas. Renewable, easier to cultivate, and yet for some reason, more expensive than a gallon of a nonrenewable resource that has to be drilled and extracted from the depths of the earth, shipped, refined, and shipped again. I bought an espresso maker of my own- it paid for itself in about two weeks.

Posted By EJ New York, NY : July 2, 2008 12:51 pm

I’m amazed at the number of people that do not have the facts straight and comment that it’s $5.00 coffee at Starbucks. For those of you who commented about the company and how well it treats it’s vendors and employees thank you! They do provide a great benefit package which most smaller companies do not. Let’s take a look at the economic impact that they have. Do any of you complainers realize how many jobs Starbucks has created not only in the stores but the jobs created buy the suppliers. Let me point them out to you: The milk companies, espresso machines, baked goods, advertising agency, coffee mugs, tables, chairs, construction workers, etc. YOU GET THE DRIFT here! How many of you have some type of retirement fund rather it be stocks or mutual funds? Do you know if they have invested SBUX stock? Chanes are they have. Wall Street can change and influence a lot of companies view points and philosophy to drive sales and profits. Let’s take a trip down memory lane to about 15 years ago when most people got to experience life after Folgers. Starbucks plaid a huge role in bringing us something more than drip coffee and the awareness. Do I enjoy independents? Yes they have some unique coffee’s and atmosphere. As an Independent business owner who competes with the big boys I love the challenge. I’m quicker, more in tune with the market and have learned a few things from my competition. You can survive with competition you just have to be smarter. The economy is tough and it’s not over the last thing we need is loss of jobs. Remember it’s not only Starbucks employees that loose it’s also the suppliers, Federal, State and local government through sales tax revenues. I hope some of you walk away less bitter as you say the coffee is at Starbucks.

Posted By Sam, KC, MO : July 2, 2008 12:29 pm

Is it just me, or does Starbucks lead the way in American excess? I mean really, sinking $10 or more on a cup of coffee is just idiotic. Yet people flock to Starbucks two, three times per day in their Hummers and other 12mpg gas guzzlers.

Maybe America is waking up and realizing that throwing away money is just silly. Hopefully, Starbucks will go completely out of business.

Posted By Sandy A, Yuma Arizona : July 2, 2008 11:51 am

“Out come the haters…

Yes, the old familiar “$5 FOR A CUP OF COFFEE?!?” argument…get your facts straight, people; Starbucks brewed coffee tops out at roughly $2 for a Venti(large for all of you who enjoy the ‘Fritalian’ ad campaign *rolls eyes*).”

Uh really? $2? Maybe 15 years ago. Better recheck that.

Posted By Frank, Austin TX : July 2, 2008 11:44 am

This is what Starbucks has done to us…ramblings by over-caffinated people with nothing else to do.

Posted By Aisek, Austin, Texas : July 2, 2008 11:38 am

Starbucks is a nice coffee shop, but their coffee is too expensive and way too bitter. The WiFi should be free. After all, a token for their bitter brew that’s much overpriced is a nice gesture. I’d never frequent the business because price premium considered, the coffee should be better tasting to lure me back. And, of the times I did visited, the customer service was nothing great. Not even a greeting or a smile. Exactly what does the high price gets you?

Posted By Darren. Richmond, VA. : July 2, 2008 11:37 am

Can’t we All Just get along??? If you don’t like SBUX,,,Then DON’T Go!!! Support Whomever you choose and be certain that you’re doing the right thing for you. There is room for more than One coffee bean seller on this great planet.

Posted By Rianne, Dallas, TX : July 2, 2008 11:35 am

Honestly, I have a simple statement. “You get what you pay for.” If you want the swill that McDonalds, Wawa, 7-11, Dunkin Donuts, etc. make, then that’s fine, go for it. If you want “real” coffee that TASTES like coffee, you’ll go to Starbucks.

And yes, for those who are still deluded, coffee is the same price at Starbucks as it is anywhere else. I defy you to prove otherwise. (Unless you’re talking about the 99 cent crap that convenience stores sell- that’s just not comparable.)

But everyone forgets an important part of the coffee experience; it’s not just about the coffee in your cup. It’s about the people who make it for you, their dedication to what they make and do and their attitudes when you walk in the door.

Baristas at Starbucks are like no others. They are 99% of the time happy, cheerful and willing to admit when something was done incorrectly and fix it. They love their jobs and they look forward to going to work every day. What other company can you truly say that about? Certainly not Wawa, McDs or Dunkin Donuts! It’s not just about drinking a beverage, it’s about having people treat you with respect.

Honestly, it doesn’t surprise me the reactions to Starbucks on this board or anywhere. We are a society who thrives on convenience and expect top service for very little. It’s the same reason stores like Walmart thrive- we want it all and we want it cheap. It’s also why customer service has declined so severely and why rudeness has become the norm.

It’s true that Starbucks may have over-expanded and for that, they have learned a valuable lesson and are on a correction course.

I love Starbucks- not just because I know so many who work there and know what KIND of people work there, but also because the company has philosophies that I truly believe in. They support their staff like no other American corporation, they believe in making their customers happy above all else and their product is superior to anyone else’s.

Shame on the uninformed for spreading rumours about a truly amazing company and for not doing their research! Shame on Americans for putting convenience and “cheapness” above true customer service and respect.

Posted By Jo, Warrington, PA : July 2, 2008 11:35 am

Starbucks success is tied soley to their marketing dept and not to their coffee. Their coffee is just so-so. The reason so many people remark about how expensive it is must be due to the fact the coffee itself is low quality. Most would not mind spending $3-$5 for QUALITY coffee but find that price point alittle high for low-end beans.

Posted By Cheryl Miller, Seattle WA : July 2, 2008 11:34 am

When I hit the door of the SBUX near my job each morning, my guy starts my venti sweet tea almost immediately after he sees me. Soon after, I’m handed my slice of pumpkin bread and my SBUX card is swiped. Both items are under $5 and I’m out in under 5 minutes and on my way to work. So let’s see…change from a $5, out the door quickly, good customer service, and full/caffeinated until lunch? THAT works for ME. I’m hoping that my regular spot stays open.

Posted By Astrid, Charlotte, NC : July 2, 2008 11:21 am

Bummer. On the other hand considering the state of the world, well, there is no need for 40K Starbucks. Stop yelling at me! I haven’t had my coffee!

Posted By Adrian Takir STL MO : July 2, 2008 11:18 am

I see their down fall as the moment they had to start using automatic espresso machines. From that moment on the “realness” evaporated. They can’t even make a decent americano. Two of my favorite places in the US now are caffe d’arte (www.caffedarte.com) and caffe appassionato (www.caffeappassionato.com) both of which are in Seattle (I live in Arizona), OK and I love Segafredo Zanetti in Portland Oregon …. the best americano I have had in the US (yes that includes you New York).

Posted By Craig - Mesa AZ : July 2, 2008 11:15 am

I love Starbucks. I would also enjoy
a local coffe shop if they made good coffee. Coffee doesnt depend on the location but who is making the coffee, are they using the cheapest beans they can scrape off the floor etc. I won’t drink Folgers or Yuban or whatever because i do like strong coffee. There are a few other chains coming up such as Peets. Peets is great. The bottom line is the the individual store owner is honest and committed to serving the best quality thats what you’ll get if not then you won’t.

Posted By Sandra Sac.,CA : July 2, 2008 11:13 am

I think this is a good example of the free market at work.

It’s true that brewed coffee at Starbucks is not much more expensive than a cup at any number of other establishments. What set Starbucks apart was that they were the only game in town in many places for an espresso drink, outside of high-end restaurants. That is what drove their expansion, along with their extremely progressive business model (what other company can you think of offers even part-time employees stock and medical benefits?).

However, under their previous CEO, they expanded too fast. The goal of having a Starbucks within walking distance is just not realistic, and caused the brand to become sterile. I can think of at least three Starbucks around my house, ensuring that no matter which way I chose to drive to work I will pass at least one Starbucks.

This will be a good thing for Starbucks as a company, I’m just concerned that people will be losing their jobs. Quality employers are tough to find these days.

Posted By Ken, Las Vegas, NV : July 2, 2008 11:11 am

While there are notable exceptions, most local coffee houses sprung up AFTER Starbucks introduced the idea to the U.S. Many local coffee shops have enjoyed free marketing from Starbucks, and I do not pity them when they go out of business due to their lack of consistency and quality. True coffee connoisseurs went to their independent coffee house before, and if the independent continued with a high-quality product, then they should be able to withstand Starbucks (esp. for all the people complaining about “bitter” coffee). Credit needs to go to Starbucks for making coffee an “experience” and their coffee shops a “third place.”

Posted By Lisa, Washington DC : July 2, 2008 11:04 am

Yes I agree the coffee tastes burnt…but that makes sense because anyone who truly knows coffee will probably have their own espresso machine and buy quality beans to make their own. So that leaves the addicts who don’t really appreciate good coffee and load it up with cream/sugar/flavor anyway, so why provide quality beans if you cant taste it anyway?

Posted By J, Washington DC : July 2, 2008 11:02 am

Hey now “Bucks” will go the way of the DODO bird and pettoys.com

They will have to figure out how else to waste thier disposable moneys!!

Posted By Jeffrey, Kansas City Missouri : July 2, 2008 11:01 am

I’m guessing that 95% of the people paying $2 (or whatever it costs) at Starbucks can get free coffee at work.. Ok, maybe the Starbucks tastes a little better (or maybe not). But is it really worth $2 every day? Think about what you pay in a year for coffee at Starbucks!!! Go get your free coffee at work, or make it at home, and do something more rewarding with your money than drinking coffee!

Posted By Ahab, Seattle, WA : July 2, 2008 10:58 am

First off its PIKE PLACE, not PIKES PEAK. Just goes to show how little some of you really know. The previous CEO, Jim Donald was an idiot, he saturated the market with too many stores and now that Howard Shultz is back in the driver’s seat, he has to clean up Jim Donald’s mess. Which, unfortunately includes 600 stores closing that honestly probably should not have been opened in the first place. Starbucks is not going “under” as many of you say, rather protecting itself during these tumultuous time with our weak economy. I say keep pressing on Starbucks, you do so much to help our communities local and abroad. We need more companies with focuses like this!

Posted By Kris, Las Vegas, NV : July 2, 2008 10:58 am

The loud,rude, trash talking, baristas, the bitter, highly priced, coffee and the over packaged food items all make Starbucks an unpleasant experience. There’s an arrogance to the chain that has no appeal at all.

Posted By Katherine, New York, NY : July 2, 2008 10:58 am

The guy from Italy is right. Starbucks coffee is no good, but considering what has been sold in the U.S. so far, it’s at least some progress.
First of all, get rid off the paper and plastic. We can get that at McDonald’s too but cheaper and with fries :)

Posted By Savas, Annapolis, MD : July 2, 2008 10:57 am

3 simple words; Small, Medium and Large!

Posted By Andy, Atlanta, GA : July 2, 2008 10:54 am

Out come the haters…

Yes, the old familiar “$5 FOR A CUP OF COFFEE?!?” argument…get your facts straight, people; Starbucks brewed coffee tops out at roughly $2 for a Venti(large for all of you who enjoy the ‘Fritalian’ ad campaign *rolls eyes*). I believe that the competitors’ pricing is not a whole lot different.

What CAN run around $5 are the Frappuccinos and Lattes, because - unlike brewed coffees - there is a certain amount of preparation and skill involved in making them. I defy anyone to get a better latte or cappuccino from Dunkin’ Donuts, McDonald’s, or convenience store. In all honesty, most people who get cappuccinos from the above named competitors don’t know what a real cappuccino is. To be clear, it doesn’t come out of a self-serve dispenser like you see in convenience stores…that’s a powdered mix, and a bastardization of the name cappuccino.

A REAL cappuccino is made of carefully steamed milk and espresso, and is largely foam, as opposed to a latte, which would be more milk than foam. Good luck getting any kind of espresso flavor out of one of those machines.

In response to the person who claims that a Starbucks “expresso” costs as much as a gallon of gas - another misconception or outright lie. A quad espresso doesn’t even cost that much.

Cathy from Newbury Park - sorry to hear that the level of service took a downturn in your local store. Unfortunately, as passionate as some partners(like myself) can be, that level of dedication isn’t totally consistent across the board, and this is where you tend to see it reflected. Hopefully, your next visit to a Starbucks is a much more positive one.

Jerry from Baltimore - there’s nothing “prefab” about good customer service, friendly partners, and a sense of welcoming. As for the comment regarding Starbucks ‘bullying’ local coffee shops out of business: in my experience this is yet ANOTHER misconception because Starbucks is a “multinational”…in a nearby town, there is a Starbucks with at least two other coffee shops within spitting distance, and they’ve all peacefully coexisted for as long as I can remember.

I’d LOVE to know what this alleged “offensive statement” was on our cups… Aren’t people TIRED of being so easily offended yet? What a bunch of babies we’ve become as a nation…

Angela from LA - are you aware that people who clean bathrooms are then able to wash their hands after they take off the gloves that they used? Yeah, I was AMAZED by this new concept as well…we’ll see if it catches on. I think you’ll find that ANY restaurant/food service establishment does the same thing regarding the employees cleaning the rest rooms.Is it really that big a deal?? I suppose you have someone else clean you bathroom at home?

Well, I think I’ve spent more than enough time here defending the company I work for. WHY do I defend them? Simple, really…I’ve worked far more jobs than I care to remember, and I’ve never once had one that I can honestly say that I love. I love the company, what I do, and who I do it for. They’re good to their employees, and despite what some may think, thrive on being good to their customers.

Posted By SBUX Barista, Warrington, PA : July 2, 2008 10:54 am

I personally don’t drink coffee, but my husband and sister do and they now prefer McDonalds over Starbucks. Better tasting and less money. And that’s the name of the game - - isn’t it.

Posted By Mary, St. Louis, MO : July 2, 2008 10:44 am

Personally, I prefer the independent coffee roasters. Right here in KC, we have two: The Roasterie and Broadway Roasting Company. IMHO, Broadway is just about the best coffee I’ve ever tasted, and I’ve tasted it all over the world. He gets beautiful plump beans from the four corners of the world, and doesn’t roast everything the same way. As a result of his fine senses, his business has grown by leaps and bounds. But he hasn’t over-extended himself by opening a bunch of shops; rather, he has made huge strides in providing a superior product to local businesses. So has Roasterie.

Sure, people are cutting back on little things like their favorite specialty coffee drinks cos we’re all suffering due to the high cost of gas. It’s an unfortunate fact of life right now in these here United States.

Starbucks is fine in a pinch, but I find their coffees to be bitter. They tear up my guts as badly as Folger’s, another local producer. They over-roast, which causes the beans to release their oils, then pack it all up in air-tight bags which sit around for who knows how long before they’re used. It doesn’t take long for the beans to degrade. What you end up with is bitter coffee. Starbucks has lost its luster, and could learn a thing or two from independent roasters.

Posted By Jubie, Kansas City, Missouri : July 2, 2008 10:42 am

Starbucks is no more expensive than other coffee shops. I pay $2.04 for the same size coffee I would get at Dunkin Donuts (which is about $2.41). Don’t understand why people say starbucks is more expensive. The Frapp’s are less expensive than others as well.

Posted By wash dc : July 2, 2008 10:41 am

I think that the marketing person who sold the world on the idea that Starbucks bitter, over-roasted coffee was a quality product deserves an award.
You won’t find Starbucks here in Italy…good coffee is a tradition and consumers know good from bad. Knowing that, Starbucks chose not to compete.

Posted By rickpappas, trento, Italy : July 2, 2008 10:37 am

I have been unhappy with Starbucks changes begining when they replaced their espresso machines to all automatic one button jobs so the art of making coffe was gone! The new trick of Pikes Place is terrible and I think a way to sell cheaper blend. I enjoyed having new blends each week so much better. Some of the stores the baristas are rude. So rude that I could not believe it, yelling, cursing and acting like idots while on the job in front of customers.

The new remodel jobs in my opionion did nothing for them, less space to sit around, if you wanted to. THE automated Starbucks music experience, is really horrible. I liked it so much better when each store could play whatever music they liked not playing only preprogram stuff, yuck!

I only go to Starbucks because I do order the regular coffee and it is close to my work and when I travel in airports always there. Hope by closing stores they think long and hard about what made them great once. Now, I do not feel that same about them.

Posted By Laurel San Diego, CA : July 2, 2008 10:37 am

Doesn’t anyone make fresh coffee at home anymore? Jeez!

Posted By Shawna, Austin TX : July 2, 2008 10:35 am

I don’t see how people can’t see that it is because of our weak economy in this debt-filled nation that is causing this. It’s not the price of Starbucks coffee (which is priced reasonably when you look at all that goes into it–fair trade/organic/etc). I am one for local places…I shop for groceries at our co-op, I buy organic as much as I can, I love our local coffeehouses. I also drink Starbucks coffee. Not because it’s “cool” or “trendy”, but because the product is always fair trade and I like the taste of the strong coffees…which is what Starbucks is known for. So for those of you who drink Folgers, Maxwell House, and all that kind of coffee of course you’re not going to like Starbucks. It’s much stronger than those. But don’t bad mouth it just because it’s not watered down like the commercial brands are. Deal with it. No one is asking you to buy Starbucks coffee but please, don’t make the rest of us listen to you complain about how much you hate it just because you probably put lots of cream and sugar in yours and can’t even taste the flavor. Starbucks is an environmentally friendly, farmer friendly, fair trade company. It’s just cheaper than your local coffee house would be and more convienent. And way more consistent. Don’t ever compare McDonald’s/gas station/”cheap” coffee with Starbucks though because they are on two completely different levels. It’s not your local coffee shop…it’s a commercial coffee shop so don’t put unrealistic expectations on them!

As far as the closings go, I think it is a good idea that they close some stores. There are just simply too many of them. Fewer stores means more profit in the ones that are still around. It’s not all spread out between 20 in one town. So I agree with Howard Schultz’s decision. They just tried to grow too fast…and this is coming from a barista.

Posted By Caitlin, Lexington KY : July 2, 2008 10:30 am

I personally like the Starbucks brand of coffee, but like others have stated that the other amenities like cookies and pastries are over priced. And CD’s, who the heck buy the expensive CD’s they offer? Plus they charge for Wi-Fi and sometimes the workers were to stupid and rude to customers…i.e. messing up on drink orders or trying to tell customers that they cannot accomodate certain drink orders when across town SBUX makes that accomodation. Damn Shame

Posted By Greg, Erie, PA : July 2, 2008 10:27 am

Here’s my problem with Starbucks. They, through predatory tactics and ruthless business, put all of the locally owned independent stores out of business. They act as if they are all about being warm and fuzzy, I wonder what the families who had to close their businesses would think about that?

Posted By Joel Wellington FL : July 2, 2008 10:24 am

I was a Starbucks customer for many years - since 1997 I’m guessing… I went to Starbucks daily - it was part of my morning routine. When Starbucks raised their prices I winced - but I still went. However, I am no longer a Starbucks customer. Starbucks ? Are you listening ? I now go to a neighborhood coffee shop. The event that pushed me over the edge was the switch to Pikes Place. That coffee is terrible. I like bold coffee - the bolder the better. Pikes Place tastes like something I brew at home. If I wanted coffee like that I’d stay home - why pay for it ? In addition, the local coffee shop is quieter, cleaner, the chairs are more comfortable, they have live music on Saturday nights, the coffee is better and they know me by name. In all the years that I went to the same Starbucks they never knew who I was. I spend the same amount per month for coffee (~$60) - it’s just not at a Starbucks…

Posted By Alec Carlson, Plano, TX : July 2, 2008 10:23 am

Starbucks is incredibly LAME. Why would anybody sit down for coffee in an environment that is replicated 7,000 times over throughout the US. I personally hope that the entire franchise goes under and paves the way for independently owned coffee shops to spring up. It’s called individuality, try and find some.

Posted By Joshua, Venice, CA : July 2, 2008 10:23 am

I doubt the diversity did it. Select marketing of CDs and books is actually quite brilliant. It’s not about going to Starbucks to buy a CD. It’s about buying a CD while you’re in line for coffee. You’re a captive audience for several minutes while you wait to order and wait for the coffee to be prepared. There may be one CD displayed on the counter and playing over the speakers. That CD gets spotlight attention with competition from non others - unlike in a CD store. I am quite certain Starbucks was compensated for this selective marketing of products. The real problem is over growth - in major cities, one can stand on a corner and spot 3 or more starbucks at once.

Posted By David, San Francisco, CA : July 2, 2008 10:22 am

I stopped going when they started charging for internet. Hellooooo…

Posted By Lisa, Tivoli, NY : July 2, 2008 10:22 am

Generally, I love Starbucks but Pikes Peak is subpar. I think it’s a likely reason why the chain is heading downhill. When things are going bad, you retrench and refocus on what makes you distinctive. You don’t completely overhaul your product line.

Pikes Peak is not a bold or memorable coffee, which is what Starbucks is all about. As for comments about “bitter” taste, it’s called flavor. Most coffee places don’t measure up to Starbucks in terms of product — with the exception of Pikes Peak.

Posted By johnno, Kalamazoo, MI : July 2, 2008 10:21 am

I remember the first time I went to Starbucks, it was in a book store, which was nice, you could read, and drink coffee. At the time, the coffee was quite good, but I have found over the years, the coffee has gotten more nad more bitter to the point it’s undrinkable. I am not sure economy is really the full problem. In the beginning the coffee was rich, but now it seems most of the time it just tastes burnt.

Posted By G, Vancouver, BC : July 2, 2008 10:21 am

I don’t drink coffee but do study companies and their success and failures. Yes, Starbucks have saturated the market and this purge of 600 stores will be a good thing for them in the long run. The point I find curious in all these posts is a lot of people are in support of the little guy. Starbuck’s is one of the most responsible companies in america when it comes to it’s employee’s and the job they create. They offer a great benfit package and a fair wage to their employees which you don’t see at these other smaller shops. This directly effects one of the biggest issues in our country today which is affordable healthcare. They also are responsible in many other ways. Don’t just look at the surface but actually research this information before you make your comments. I wish more companies showed the responsibility Starbucks has shown in many areas that normally go unnoticed.

Posted By Ed Summit, NJ : July 2, 2008 10:20 am

A series of bad strategic moves, most recently the whole Pike Place roast debacle, has alienated long-time customers. Starbucks used to be the place to go to get a great, bold cup of coffee. Not anymore! With Pike Place taking up 2/3 of the drip coffee menu, all that’s left is this weak, tasteless brew. Schultz needs to ‘cut bait’ on this one and fast!

Posted By Rena, Alpharetta, GA : July 2, 2008 10:19 am

Look people, Starbucks’ COFFEE is NOT $5 a cup…it’s the over-sugared, flavored syrup dominated, whip-cream topped, slightly brown milk that’s $5. Don’t blame Starbucks because you feel the need to try to “fit in” while hiding the fact that you don’t like coffee. My Grande cup of COFFEE is $1.81…only .31 more than the Maxwell House at the Chevron station next door. I agree they have made some poor corporate decisions, but get don’t distort the truth to make your argument. Dang, I’ve gotta go…I need more caffeine. :-)

Posted By Whatarush, Huntsville, AL : July 2, 2008 10:16 am

Well, it’s not $5 for a cup of coffee… it’s $5 for the specialty drinks which are considerably better than Dunkin’ or McD’s.

Part of the reason their prices are higher is because unlike McD’s, they actually pay their employees a wage they can live on and provide health & dental benefits.

People complain about higher prices AND they complain about employees not being treated fairly. There’s got to be some give one way or the other. - But obviously if people are facing higher expenses across the board, specialty coffee drinks are a luxury that can be forgone and the layoffs & closed stores are totally understandable.

Posted By Chris, Chicago IL : July 2, 2008 10:16 am

Its about time. Besides, there are so many better places for coffee than Starbucks. There is 6 of them within ten blocks of my midtown apartment in New York.

Hopefully this will give the little guy a chance in the market.

Posted By imdagr8est1@gmail.com : July 2, 2008 10:15 am

Starbucks never had much soul, but for a long time when traveling I could count on a fresh strong cup of coffee when I saw their sign. Now, many places have decent coffee and I am getting better at finding the little independent shops. One thing that always annoyed me at Starbucks, when I order a strong coffee in a real cup, I get about 3 corporately mandated questions about how I want it. Just a %^&* coffee in a real ceramic mug!

Posted By Traveler, Tucson, AZ today : July 2, 2008 10:14 am

I stopped going to Starbucks when I realized that the little coffee house run by Neiman Marcus was cheaper. When you’re selling something at a higher price than Needless Markups, you have failed. Plus the coffee is light years better than starbucks.

Posted By Carlos, Dallas, TX : July 2, 2008 10:11 am

Yes, Killbucket it was Paul McCartney. It couldn’t be $5 coffee when people are paying over $4 at the pump? It couldn’t be that people are squeezed for cash during a recession? Foreclosures? Layoffs? Over-expansion? No, it was the CDs.

Posted By Bill, Hilo, Hawaii : July 2, 2008 10:10 am

What goes around comes around. Visit the IndieBound website and find out how you can unchain yourself from the likes of Starbucks and support locally owned and operated shops. YEA…40% drop in shares and still dropping.

It is time that we take back our communities and begin to see that buying locally owned and operated keeps your community viable. The money you spend does not go to corporate offices, it stead your money stays where your house is. Visist IndieBound

Posted By Rob, Allentown, PA : July 2, 2008 10:09 am

I pay $3.25 for a mocha, I don’t know what you guys are saying about $5 coffee. Their plain coffee is like $1.25 or something.

I love Starbucks. I also support my local coffee shops when I want just a plain cup of Jo. It is possible to support both you know.

Posted By kelly, dallas, texas : July 2, 2008 10:09 am

Coffee Bean has ALWAYS BEEN BETTER. Starbucks is finally getting what they deserve.

Posted By Derek Los Angeles : July 2, 2008 10:06 am

I think that Iowa was the last place to get Starbucks, but once they arrived they oversaturated areas. I only get a specialty drink infrequently and only do this when I get a gift card. When it comes to the specialty drinks I really like Starbucks. I don’t understand all of the other non-edible things they sell. Go back to being good at one thing and reduce the number of locations.

Posted By Bambi, Cedar Rapids, Iowa : July 2, 2008 10:06 am

I just don’t understand the SBUX bashing. I stumbled across a SBUX for the 1st time in the early 90’s in Seatlle. OMG so this is what coffee tastes like. Before that I had not had anything better than folgers. I never saw an independant coffee shop until years after SBUX went national. I have never paid $5 for a cup of coffee at SBUX either. I get a venti coffee every morning for $2.11 including tax. After years of drinking bad coffee, the $2.11 is a heck of a deal.

Posted By M.Page, Dallas, TX : July 2, 2008 10:05 am

It’s not only Starbucks that will suffer but all “premium” products. The luxury industry will begin to suffer as a whole as wages have not risen enough to be able to afford these products.

Posted By Chris Theodorou, Chico, California : July 2, 2008 10:01 am

No kellie…that wouldn’t make sense…that would add insult to injury…if they just lower the cost then they affect the profit margin at over 7,000 stores…versus eliminating stores that probably shouldnt have gone up in the first place.

Posted By Joe, Stockton, Kansas : July 2, 2008 10:00 am

“The Starbucks Experience “Somewhere between work and home”

It only works when you have either a job or a home, and Americans seem to be struggling to keep either :P

Posted By Mike, Toronto, Canada : July 2, 2008 10:00 am

Consider I pass not one but three Starbuck’s shops on my 3 to 4 mile drive to work, this isn’t a surprise. And I don’t live in a big city either!

Posted By Anonymous : July 2, 2008 10:00 am

Starbucks is a great company and certainly treats their employees well. They’re a class act that others should follow. The economy is bad, and they’re taking the course that they need to in order to stay afloat. I will always be a loyal customer. Long live Starbucks!!

Posted By Merelee, State College, PA : July 2, 2008 9:59 am

Starbucks is the epitomy of market saturation, not a very good business model when you sell what is essentially a novelty product (if you’re paying $5 for coffee, it’s a novelty) during a recession.

Posted By Tony - Boston, MA : July 2, 2008 9:58 am

As a friend said to me recently, “The only place Starbucks didn’t open a store was within one of their own stores!” How true. I do like the ability to grab an iced caramel macchiato while walking around Target however. Keeps me from getting too bored while my wife takes forever looking at stuff.

Posted By Glenn, Tampa Florida : July 2, 2008 9:54 am

As a share holder and an avid coffee drinker, I know that the current business plan is a disaster. One of the strongest selling points of Starbuck’s has always been the choices for coffee throughout the day. Now it’s Pike’s Place or nothing after Noon. Piggyback that on the fact that many times you go into a Starbuck’s and the “brewed coffee” is empty and you now have to wait 3-5 minutes for brewing andf it is no longer convenient for business folks on the go, not to mention really slowing down the drive thru lane. Service has taken a turn for the worse and I am sorry, but Pikes Place is nothing more than a fancy name for McDonald’s coffee.

Posted By John Ford, Bismarck, ND : July 2, 2008 9:51 am

The only times I have ever had to endure the “Starbucks experience” have been on road trips when one of there stores had been the only thing available on the FL Turnpike reststops when I needed a coffee. Waiting 10-15 minutes for a cup of bitter swill-in-a-cup was not exactly enlightening. I did not leave the store with a ray of glowing sunshine on me. I would take the Pepsi challenge that Starbucks would lose every blind taste test it would be forced to enter. Show me one person who closes their eyes, has that first sip and says….”now that’s some good coffee!” ….it just doesn’t happen.
And free WiFi?? Maybe I am from a different generation, but if I want to go out and enjoy a good (emphasize good), the internet would be the first thing I would want to get away from!! Give me a place where I can actually interact with those around me and not gaze into a screen…now that’s an experience.
I currently do not make a habit of stopping for coffee anywhere. For the money I would spend in one stop at a Starbucks, I could buy coffee for 8-9 days and make it at the house, and it is MUCH better than anything anyone there could make on a good day. In fact…I could probably run 10 miles in August, wrench the sweat out of my shirt into a cup and it would still taste better than that stuff.

Posted By Brendan Orlando, FL : July 2, 2008 9:50 am

It is not surprising that Starbucks needs to scale back its empire in order to survive in the current economic environment. Its good business sense, but unfortunately, some people may lose their income.

Let’s discuss their coffee. I have to agree with many who say that the coffee is bitter and the atmosphere is generic; however, the experience is reproducible at almost every Starbucks - which is exactly the point. If you like their chain, you can go to Anytown, USA, and experience a little piece of home and comfort.

Posted By tom, columbia, sc : July 2, 2008 9:50 am

Amen! The world can do without a $5 latte and the chain’s phony claims of concern for the environment have been exposed.

Posted By Michael, Ohio : July 2, 2008 9:50 am

“The age of consumerism is nearing its end. Consumers beware, locality rejoice.”

if there’s one good thing to come out of this economic slump, i hope this is it.

Posted By Dick, Philadelphia, PA : July 2, 2008 9:47 am

Economic pressure? It does not add up! Gas cost twice as much in Italy, labor and taxes are roughly the same, the “experience” is a thousand times better, the coffee 100% better and always consistent and served by people that know what they are doing and glad to have your business, and the pastrys?? forget about it. Starbucks just does not know how to do it right

Posted By CJ Taylor, VA Beach, VA : July 2, 2008 9:44 am

I’m going to miss the local Starbucks about as much as I miss being seasick!

Maybe people are being forced by economics to use good sense, $5 for a cup of coffee? not on your life pal!

Posted By Bob , Harriman, Tennessee : July 2, 2008 9:41 am

This isn’t really a surprise after the huge expansion so recently and the economy. One thing that a few people have pointed out, a cup of plain old coffee at Starbucks will NOT cost you 4 dollars, more in the neighborhood of 2. Those prices are for lattes, etc. I went to Dunkin Donuts this morning, since there’s no starbucks on my way to work, and I paid $2.40 for a medium iced coffee (including tax). Their prices for coffee are comparable.

Posted By Jennifer, Lowell MA : July 2, 2008 9:41 am

Not only did selling CD’s kill Starbucks financially, but blasting music in the stores destroyed the Starbucks experience. It’s not something they can get back. I remember going into a Starbucks five years ago and actually being able to carry on a conversation (or even read) over the quiet background music. Now, they just blast music from whatever CD they’re trying to hawk. They had a great thing going and they completely ruined it. Morons.

Posted By Jim Bowman, Canton, MI : July 2, 2008 9:40 am

We’ve become a society that has become dependent on needs from outside sources. Why not simply make your own coffee at home? You can head to the grocery and purchas your coffee and get pennies on a cup.

Posted By Jay, Washington DC : July 2, 2008 9:40 am

While I am quite the Starbucks addict, I have to agree that the amount of stores has gotten a little on the ridiculous side. Starbucks used to have the exclusivity factor about them. Now, with a store just about on every corner, they are becoming just as common as McDonald’s and Taco Bell. Brands like Coach, Gucci, and Chanel are becoming the same way. While making themselves accessible to more people, they are losing the exclusivity they have claimed for so long. I’m a college kid and almost every other girl I see on campus is carrying a Coach bag(real or not is unknown but still…it’s the point).
Anyway, Starbucks had a good thing going and now it seems they have gotten a little too greedy. Also, every time I go into one, whether in my hometown or somewhere else, the service is always the same. They don’t get in any hurry. While I understand that they are trying to provide the Starbucks “experience”, if you are in any kind of a hurry, you may as well just go to McDonalds or somewhere else. And I agree most of the pastries are blah although the toffee almond bar is pretty tasty heated up.

Posted By Jennifer, Greensburg, Indiana : July 2, 2008 9:39 am

Regular Starbucks coffee (not espresso) is basically the same price as Dunkin and McDonalds…all of these people talking about their prices being too high need a reality check. And in terms of their espresso-based drinks, their prices are actually LOWER than many of the small independent shops around here.

Posted By Tip, Boston, MA : July 2, 2008 9:37 am

Let’s be honest, with this current economic depression - people have ceased to patronize fast food as frequently, and going out to eat (no matter if it’s an everyday cup of coffee) has affected everyone. It’s getting to the point where finding money to fill our gas tanks to GET to work is going to be more important than a cup of coffee.

Even with a strategic 5-year plan, Starbucks must do more than close stores. They need to strategize their price-points, order more enticing foods for their menus, step-up their customer service, bundle food and drinks with sensible price points and make a damn good cup of coffee. The typical pallet cannot handle severly bitter coffee… that trend is LONG gone.

We’ve only ourselves to blame for this economic depression. Hopefully in this next election the American people will use their voting power to help improve the economy instead of destroying it… these past 8 years have been unbearable.

Nuff said.

KJ - Philadelphia, PA

Posted By KJ, Philadelphia, PA : July 2, 2008 9:37 am

Congratulations to McDonalds. Their iced coffee is not only cheaper, but it also tastes better than Starbucks. Starbucks got beat at their own game.

Posted By John Portsmouth, VA : July 2, 2008 9:35 am

“Maybe they shouldn’t build a Starbucks across the street from a Starbucks.”

ROFL … OMG so true. I visited NYC this weekend and I saw this set-up a couple of times. Yeah - a Starbucks across from a Starbucks just doesn’t make sense.

Posted By Andy, Atlanta GA : July 2, 2008 9:35 am

Although most choose to believe otherwise, the prices are not out of ordinary, it’s about 1.65 for a “Normal” cup. It’s $4.00+ for a 20 oz concoction of like 4 espressos, 2 parfaits, and a fudge brownie… and you can convince yourself you just had a coffee. If I only can conjure up such magic ($$)!

Posted By Brett Metuchen, NJ : July 2, 2008 9:35 am

I go to a Starbucks about once a year. And then I remember why I don’t go more often: slow snooty service, really bad tasting coffee, high prices, and a cold atmosphere in the stores. They do have clean rest rooms, I’ll give them that.

Posted By SW, Portland, ME : July 2, 2008 9:34 am

I don’t like coffee. I like going to Starbucks for their frappuchinos that don’t have coffee. However, I am not a “regular” customer because of their prices. Most of the local shops around here are more expensive than Starbucks. Also, they do not have many non-coffee options.

The thing local coffee shops have here is free WiFi. I pay for internet at home and I have a data plan on my phone (phone as modem costs extra so I do not use that). No way I am paying for a third internet connection.

Posted By Daniel, Manhattan, KS : July 2, 2008 9:33 am

Starbucks drip coffee used to be undrinkable, especially if you are a black coffee drinker like I am. But the Pike Place blend is very good and got me back into the door. The lack of free internet is, I think, one of the biggest mistakes the company has made. Almost all independent local coffee shops have free internet and, in my area, garner larger crowds that stay for longer periods of time, often buying lunch and/or snacks. Having to pay money to be a Rewards member in order to get “free” internet is not a good strategy.

Posted By Kevin, Voorhees NJ : July 2, 2008 9:33 am

While I agree that Starbucks should become more price-senstiive, I’m not sure why people are harping on about the price of coffee- if you don’t like it, don’t buy it. Besides, who goes to SBUX for coffee anyway- I only visit it for mochas and the like. Seattle’s Best Coffee (SBC) was better but SBUX is the best now. The only thing that was better was the amazing “Espresso Float” served at “The Last Exit” across from the University of Washington in Seattle: espresso, mile, chocolate, ice crea, and whipped cream! Now that’s worth 5 bucks! But Starbucks coffee is not $5.00. Even their frappucino isn’t $5.00.

Posted By Corey, Detroit MI : July 2, 2008 9:32 am

Starbucks is extremely overpriced and their coffee is terrible. Their service is also terrible. This was bound to happen at some point.

Posted By Matthew, Miami Beach, FL : July 2, 2008 9:32 am

I have never understood Starbuck’s popularity. I love coffee, but I’ve been to Starbuck’s maybe two or three times in my life, and there’s one right in the building where I work. Starbucks is an icon of American’s love of things that we really can’t afford… We live in houses we can’t afford, we drive cars we can’t afford, and we drink our $2 coffee, which we can’t afford.. $2/day = $10/week = $500/year.. How many American’s worry about money but still spend $500/year on coffee? Most of us probably can get free coffee at work and save $500/year, but we just have to have our Starbucks.. The housing market was the first to crumble, because it is much more obvious that we can’t afford housing prices than coffee prices. But eventually people will figure out that they don’t need (and can’t afford) $500/year on coffee.. It is just COFFEE people? It is just as good from the gas station as it is from Starbucks!!

Posted By Nick, Boston MA : July 2, 2008 9:30 am

I stopped going to Starbucks & now go to WaWa or 7-11- $1.49 for a 20oz coffee instead of $3 something.
We have an espresso machine at home if I want a latte.
I only go to Starbucks now if I have a gift card.

Posted By Kristen- Williamsburg, VA : July 2, 2008 9:30 am

Everyone is discussing the high cost as an issue, but I don’t see anyone mentioning the ridiculous number of calories in their coffees. I don’t go to Starbucks anymore because its 400 calories for a DRINK. I don’t know why they haven’t considered offering versions with sweetner substitutes, and low-calorie ingredients. I can make almost the same caramel macchiato at home for 150 calories. Its time they start thinking about the fact that many are concerned about their growing waistlines.

Posted By Terra, Atlanta, GA : July 2, 2008 9:30 am

Starbucks is the worst coffee experience one can have. I have always described their coffee as being burned for 24-hours before selling it to the blind public. If you think Starbucks is the end-all be-all in the coffee drinking experience, then you truly have no idea what a great cup of coffee should taste like. Starbucks is only closing 700 stores? That’s too bad - they need to close them all, tuck their tails between their legs, and give themselves a timeout to figure out where they went wrong.

Posted By John, Lisle, IL : July 2, 2008 9:30 am

I agree with Schultz to some extent over the “experience”. When they started the new wave of stores a few years ago that were much smaller and very cold atmosphere, I haven’t enjoyed going as much. And what ever happened to the great live music they used to have? I really hope they don’t close many stores in my area…then I’ll be forced to go to Dunkin Donuts…YUCK!!!

Posted By Scott, Troy, NY : July 2, 2008 9:30 am

First off, those of you claiming that Starbucks coffee (black gold indeed) costs more than oil are either intentionally exaggerating or are just confused. Their lattes and specialty drinks do cost in the upwards of $3-$5, which admittedly is a hefty price for some frills and sugar, but that can’t be compared to what you get at Dunkin Donuts or McDonalds (the latter of whom started selling such drinks, which have a similar price tag!). Drip coffee from Starbucks costs around $1.50-$2.25, varying by size. It might be a bit more than competing indie brands, but by no means exorbitant.

That being said, I can imagine Starbucks is feeling the sting of an economic backturn. Not only are the people in my residence beginning to grow irate at the rampant expansion — within five minutes of our mall there are three Starbucks, not including the Starbucks in the mall itself — but with less pocket change people are cutting frills like Starbucks from their daily routine. I’m not sure what the Pike Place campaign was supposed to accomplish, but I hope Howard Schultz succeeds with the company so that I can a bit more responsibly enjoy my grande White Mocha.

Posted By Justin, Richmond, VA : July 2, 2008 9:29 am

McDonald’s Iced Coffee is great and reasonably priced. I have stopped going to Starbucks for any cold drink since I discovered it.

Posted By Katrina, Arlington, VA : July 2, 2008 9:28 am

Good. SB is a rotten company that exploits it’s workers, and those that supply it with coffee beans.

No, I’m not an ex-employee.

Now if only Wal-Mart coudl have such misfortune.

Posted By outpatient8, Philly, Pa : July 2, 2008 9:28 am

I’d be willing to pay $3 on a regular basis for a grande mocha, but not $5. that gets too expensive on a daily basis. If they lowered it to $3, I’d return. Until then, it’s Dunkin Donuts for this Jersey guy.

Posted By Jeff LaCasse, Old Bridge, NJ : July 2, 2008 9:27 am

I drink a venti, non-fat latte - the biggest size and it is just $3.65. I make that choice for a fancier drink and I’m willing to pay for the quality. I like the Pike’s Place blend and staff explained that is made to add milk. Does McDs or anywhere else have the staff capable of doing that? I didn’t drink coffee until Starbucks came to town! I would seek out Starbucks on vacations and savor the taste and experience.

Posted By Marta, Columbus, OH : July 2, 2008 9:27 am

STARBUCKS Coffee is just one example showing that AMERICA is finally comming down to earth!!!
The MOON DAYS are over with….
Sooner or later, we all will have to make sense of what we buy, what we eat and what we drink.
Starbucks was one of those sensless shoping things! More will go away in the near future.
Deep regrets for the ones loved being ripped off at Starbucks!

Posted By The TRAVELER, Deatroit, Michigan : July 2, 2008 9:26 am

I wouldn’t care if they closed all of them. They make lousy coffee.

Posted By Bethpage, New York : July 2, 2008 9:25 am

The Starbuck’s “experience” preys on the idea that ordinary Americans can feel important and elite if they walk into a coffee shop that prides itself on being “upscale”. The problem, however, is that you are still paying triple and even quadruple the price for a cup of coffee — a basic American staple. Starbucks has bamboozled Americans into feeling special if they parade around their office place with a Starbucks cup. It is high time that we revert to basic and simple living in order to protect our enviornment as well as our wallets!

Posted By Jay Port Jefferson Station, NY : July 2, 2008 9:25 am

starbucks needs to make its regular customers go to fewer stores. there is no more market share gained by opening 25 stores in one market. have 10-15 with the same sales. we have been waiting in longer lines at some stores not all. thinking you could have 40,000 stores is bordering on iresponsible have maybe 5,000 stores and look for other ways to increase sales and stock value. maybe with sales of equipment or quick breakfeast and lunch like some stores in U.S and europe. the european stores i have been in are fantastic like Berlin Germany for example. the energy there was amazing both from employees and patrons. also the economy is fine stop watching the news and live.

Posted By bk,raleigh, nc : July 2, 2008 9:25 am

To Chris is Syracuse. You said “if the white house does not act quickly to change our oil consuming habit.” I was not aware that one of the President’s tasks was to monitor our driving habits. The amount of oil in the ground is diminishing and we, not the President have a responsibility to use the brain that God gave us. Less oil, less gas, cut back. It is simple and I did not even have to call Mr. Bush to figure it out.

Posted By David Louisville KY : July 2, 2008 9:24 am

Bitter? I specifically go to Starbucks because I like the taste. Gas station coffee? Are you kidding me? Who knows how long it has been burning in those pots? Weak, no taste, burnt coffee from a gas station is no way to go through life.

Posted By Sir Scott, Potomac Falls, VA : July 2, 2008 9:23 am

There are at least 5 Starbucks within 5 minutes of my house. Within 7 minutes of my house, there are at least two locations where there are two Starbucks on the same block. I have seen local cafes close and watch as Starbucks opens another store in their place. I am converting over to the local businesses when I can. That is the best coffee experience. Although Starbucks coffee taste burnt, they charge me more to get less coffee in an iced one, etc., I admit I still love those quick little latte treats. But it’s not worth pushing out the local cafes, and with Starbucks in the same shopping centers as other Starbucks, I’m sure they will be OK closing some.

Posted By Anonymous : July 2, 2008 9:22 am

just to comment to Angela’s comment which i realize is pretty far down, you must not eat any fastfood then becuase mcdonalds,burger king, taco bell, KFC, just about every fast food chain , the employees that serve you your food also clean the restrooms. it is nothing new or unusual. to everyone else..i for one love starbucks, been hooked on it for almost 5 years and i have to say, i agree, the coffee isnt that expensive unless you add shots/syrup/or any other extra’s. you wanna jazz it up its cost you some more money just like everywhere else.

Posted By shannon, macon GA : July 2, 2008 9:22 am

There was a Christian boycott????

Posted By Rob, Detroit, Michigan : July 2, 2008 9:19 am

I don’t know where these McDonalds are that have the “great coffee”. I went to one of them shortly after they rolled out their Starbucks rival and it was worse than what I could have gotten at the gas station next door. Throw in the fact that McDonalds is filthy and the service is pathetic 9 times out of 10, and its not a hard decision to pay more for a far superior product.

I certainly hope none of the shops in Birmingham are closing.

Posted By Birmingham, Alabama : July 2, 2008 9:19 am

Starbuck’s is over-priced fad coffee with stuck up baristas serving even more snooty customers. Yelling at someone for ordering a “large” is just asinine.

In tough economic times, people are a bit more frugal with their money. I know everyone in my office moved from buying Starbuck’s to Folgers or whatever’s on sale at the grocery store.

Posted By Pink Elephant : July 2, 2008 9:19 am

To Kelly in Greenwood. You said “I would have hoped that this company would have been smart enough to simply lower the terrible prices instead of closing stores…wouldn’t that make sense?”. It is a simple concept in that you cannot lower prices and continue to pay for the stores that they have. When you sell one product, you either have to be