Starbucks to Close 600 Stores – Will Anyone Notice?

July 2, 2008

by — Posted in Personal Writing

Picture from here

Starbucks is closing 600 stores and laying off 12,000 people according to Reuters reporting.  Is this really a problem?   From the unemployment we may notice it, but from an access to upper class yuppie coffee will we?  I read yesterday someone in Portland, OR had 23 stores within 2 miles of of their house.  This guy has 43 within 5 miles, and reports the highest density they have found is 170 stores around Broadway Ave in New York City?

When I was growing up I though a Mcdonalds every other exit on the highway was dense growth for a store or business.  Now that may as well be freaking no man’s land as far as Starbucks is concerned.  If you cut down half of all the stores around the three locations I mentioned earlier – that is 110 stores right there, so 1/6 of the amount of stores to close and that will still leave an insane amount of density for those residents.   Don’t expect me to pity you if you have to walk another 100 yards because the Starbucks closest to you closed.  It does mean however you are a bad person that didn’t frequent your closest Starbucks enough to they decided you weren’t worth sticking around for to deliver coffee goodness to – remember that when you walking that extra 3 minutes.

I once read that they could build a Wal-Mart five miles from another Wal-Mart and both wuold still be profitable.   I think in the old Starbucks regime is that they could build a new Starbucks five feet from another Starbucks and still be profitiable.  It seems that old thinking was wrong and now all Starbucks muct be a minimum 15.3 feet from one another.

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