Trouble in Coffeeland
Many people I know love coffee, they say that it is the ultimate drug for them, they drink their morning cup of joe and instantly feel happy, as the caffeine hits their system they feel like they could accomplish anything. As a tea drinker this isn’t something I get. It all just tastes kind of burnt to me, especially the Starbucks stuff (though, admittedly I haven’t tried their new blend). Anyway, I am aware that I am a huge majority, in fact I think I am the only one of my friends who does not drink coffee, apparently though people aren’t drinking nearly enough coffee, at least not from Starbucks.
Despite their inflated prices and push to be more then just a coffee shop, Starbucks is laying off 12,000 employees and closing the shutters on almost 600 stores. According to their press release this is part of their “Transformation Strategy” I guess that strategy would be to close stores so they are no longer a bloated mega-corporation that is losing too much money to properly function. The company had initially projected closing just 100 stores, but with the current economic climate and the company seemingly in a free-fall, 100 stores proved to be just a bit too optimistic and they are forced to shut down 600.
Now what is really interesting (well to me), is that despite the 600 stores closing down and the 12,000 employees being laid-off “Starbucks now expects to open fewer than 200 new U.S. company-operated stores in fiscal 2009.” How exactly do you explain that to the folks you are firing as you are closing down their location. My guess is it goes something like this: ‘I’m sorry we have to let you go, but please feel free to apply to one of our 200 new locations scheduled to open in 2009, after all, you’re perfectly qualified.’
Oh, and of those 600 stores closing down, about 70% were opened in the last 2 years. Now you might have to walk to the second closest Starbucks location for your morning coffee, you know, the one across the street from the one you normally go to.
Those 200 new stores for 2009 are sure seeming like a good idea right about now, aren’t they?
July 3rd, 2008 at
I beg to differ. I love coffee, but the friends you describe aren’t coffee lovers so much as drug addicts. They *use* coffee.
A good indicator is the decaf coffee test. If you don’t see the point, you’re a user. If you would prefer it with caffeine but still enjoy the qualities of the coffee regardless, you qualify as a coffee lover.
July 3rd, 2008 at
Hey Matt, I read your post and wanted to correct you on a few things since I work for the company.
First, corporate headquarters isn’t done printing out the lists for which stores it’s closing, and no one has been informed yet (yes I know it’s aggravating for some people I work with, who are planning on moving down to Florida). Secondly, the employees are not being terminated off the bat; they are being relocated to stores nearby. If they cannot be relocated they will receive a severance package and continuing health care coverage. Most companies would just boot you out, but since Starbucks is run by a true mensch and he has to answer to his nagging Jewish mother, he’s not kicking anything, anytime soon.
Third, I know you don’t drink coffee frequently or visit Starbucks that often, but it has been known (for two weeks now) that Starbucks is bringing back the “Bold” coffee selection that will be brewed alongside a different variety of house blend since many people have complained about “Pikes Place Roast.”
I’ll be in the city again soon, so if you are in the mood, you, we could stop by a local store and try out the new brew. Don’t worry, it’s on the house