Starbucks to close stores in the U.S.

[Slimprofits]

New York Times - 01/30/08

The man who built the chain, Howard D. Schultz, has retaken the reins in an effort to revive it. He is scheduled to roll out a plan on Wednesday that will almost certainly involve shutting down more stores in the United States while accelerating expansion overseas.

E.J. said that as Starbucks and Home Depot goes, so goes the U.S. economy....

[FRED]

Re: Starbucks to close stores in the U.S.

New York Times - 01/30/08



E.J. said that as Starbucks and Home Depot goes, so goes the U.S. economy....

EJ writes in:

One of the worst industries to be in for the next couple of years will be the hotel and restaurant industries. Both vastly over-expanded during the 2003 to 2006 post bubble reflation period, and build-outs continued through 2007 even as the GDP growth rate fell to 2.2%. Go to nearly any hotel and restaurant and you will find many similar competitors nearby. Combine over-capacity with rising food prices, rising unemployment, falling incomes and reduced travel and business activity, and you have a recipe for the virtual collapse of these industries.

What to short?

[Slimprofits]

Re: Starbucks to close stores in the U.S.

EJ writes in:

One of the worst industries to be in for the next couple of years will be the hotel and restaurant industries. Both vastly over-expanded during the 2003 to 2006 post bubble reflation period, and build-outs continued through 2007 even as the GDP growth rate fell to 2.2%. Go to nearly any hotel and restaurant and you will find many similar competitors nearby. Combine over-capacity with rising food prices, rising unemployment, falling incomes and reduced travel and business activity, and you have a recipe for the virtual collapse of these industries.

What to short?

[dbarberic]

Re: Starbucks to close stores in the U.S.

As long as they do not close the starbucks and chipolte closest to me, I'll be happy.

[Slimprofits]

Re: Starbucks to close stores in the U.S.

Starbucks puts the brakes on new stores

The company said it's slowing the pace of store growth worldwide by 350 to 2,150 stores for fiscal 2008, down from a reduced target of 2,500 earlier in the month. That includes closing about 100 underperforming stores in the U.S. and opening about 75 new stores abroad.

[Andreuccio]

Re: Starbucks to close stores in the U.S.

EJ writes in:

One of the worst industries to be in for the next couple of years will be the hotel and restaurant industries. Both vastly over-expanded during the 2003 to 2006 post bubble reflation period, and build-outs continued through 2007 even as the GDP growth rate fell to 2.2%. Go to nearly any hotel and restaurant and you will find many similar competitors nearby. Combine over-capacity with rising food prices, rising unemployment, falling incomes and reduced travel and business activity, and you have a recipe for the virtual collapse of these industries.

What to short?

I took the kids down to Legoland in Carlsbad a couple of weekends ago and stayed at the La Quinta there. I asked one of the maids for some extra towels and apologized for bothering her. She told me no apology was necessary: the hotel was empty and she appreciated the work.

The park was also empty. I asked around a bit and they told me it was low season, but one employee told me they had staffed for about 5000 visitors but only had about 3000. Off by 40%.

[Tulpen]

Re: Starbucks to close stores in the U.S.

Starbucks is becomming more like a second McDonalds, they even started selling hot food, just waiting for the hamburgers to appear.

They do not know how to make a decent cappucino. All you get is an expresso and on top a blob of "bath foam".

Go Peets Coffee! ;)

[Slimprofits]

Re: Starbucks to close stores in the U.S.

Starbucks is becomming more like a second McDonalds

You can say that again...

Starbucks testing sales of 8-oz. cup of coffee for $1

[Slimprofits]

Re: Starbucks to close stores in the U.S.

they even started selling hot food, just waiting for the hamburgers to appear.

I missed this the first time around, along with the U.S. closings and slower global growth, the bad sandwiches are out.

“In short, the scent of the warm sandwiches interferes with the coffee aroma in our stores,” said Howard D. Schultz, the company’s chairman and chief executive.

[touchring]

Re: Starbucks to close stores in the U.S.

Starbucks is becomming more like a second McDonalds, they even started selling hot food, just waiting for the hamburgers to appear.

They do not know how to make a decent cappucino. All you get is an expresso and on top a blob of "bath foam".

Go Peets Coffee! ;)

Commoditization of services. Signs of recession in America.

Starbucks still does ok in asia though.