Starbucks takes a beat down

[K.C.]

http://online.wsj.com/article/SB121494400432420449.html?mod=googlenews_wsj

In its most significant pullback yet to its U.S. expansion, Starbucks Corp. said it will close an additional 500 U.S. stores and cut 7% of its work force.

The move effectively ends Starbucks' era as a break-neck growth company, one that blanketed the country with about 11,000 locations nationwide since the late 1980s. It's also a sign that the specialty coffee business is taking a troubling turn just as mainstream companies like McDonald's Corp. are beginning to invest heavily in it.

Starbucks said the 500 locations, as well as 100 others it slated for closure earlier this year, will shut down during the remainder of this year and the early part of next year. The company said as many as 12,000 full-time and part-time retail positions will be eliminated with the store closures.

Hope they don't get Stalker Patti.

[ChrisTheCop]

Doubt it. The ones in NYC sure seem to be doing a good business.

[~Katja~]

I think they would have better business in rural areas if they did not maintain NYC prices.

I LOVE starbucks, but their prices keep me away and it's a rare treat

[Marc with a c]

horrible news

[Judge Smails]

I thought this was another Battlestar Galactica thread.

http://tvmedia.ign.com/tv/image/article/749/749023/unfinished-business-20061204023332523.jpg

[ChrisTheCop]

I think they would have better business in rural areas if they did not maintain NYC prices.

I LOVE starbucks, but their prices keep me away and it's a rare treat

Its a good point.
Theres no way they NEED to charge as much as they do.
I wonder what the mark up is?
Instead of closing stores, or maybe in addition to it,
they should lower the prices...even if just during the summer.

[K.C.]

I think there's a couple things behind it.

First, I think they're trying to avoid a Krispy Kreme type meltdown. Krispy Kreme is the classic example of a franchise that over-expanded so much, that it basically got crushed under it's own weight, and hasn't been the same in years.

Instead of trying to ride it out, they're just going to make their cuts now and reassess to save some cash.


The second, is I think Starbucks is getting out-classed all over the map by Dunkin' Donuts right now.

Most Dunkin' Donuts (at least around here) are 24 hours, it's cheaper, they've farmed out a full breakfast menu over the last few years (as opposed to just Donuts), and I think they've invested a whole lot more in their advertising.


And honestly, if I'm drinking chain coffee, I think Dunkin Donuts has better coffee right now.

Starbucks needs a new angle.

[~Katja~]

I just think the simple PA hick prefers to pay half at Wawa or Dunkin Donuts which are far more wide spread.

[ChrisTheCop]

Most Dunkin' Donuts (at least around here) are 24 hours, it's cheaper, they've farmed out a full breakfast menu over the last few years (as opposed to just Donuts), and I think they've invested a whole lot more in their advertising.




but they support TERRORISM!!!!

I agree, Dunkin Donuts has gotten alot better in the past 10 years.
And you can have breakfast all day long!!

[Marc with a c]

a cup of coffee at starbucks is the same fucking price as it is at dunkin donuts.

[~Katja~]

I never buy just coffee at starbucks. It's always a latte.

how much is a coffee?
just curious?

[ChrisTheCop]

why use bold letters, but lower case letters?

But ya know what? Marc Johnson is right!
But no one goes to Starbucks for their coffee.

[Marc with a c]

I never buy just coffee at starbucks. It's always a latte.

how much is a coffee?
just curious?

two dollars give or take depending on the area

why use bold letters, but lower case letters?

i'm passive aggressive about my coffee

[K.C.]

a cup of coffee at starbucks is the same fucking price as it is at dunkin donuts.


Easy!...don't blame me because I haven't been in a Starbucks in a while.


There is a definite mass perception, though, that Dunkin' Donuts is cheaper...and I think that goes back to the fact that they advertise better, when not invoking Jihad via Rachel Ray.

[~Katja~]

if I can get a large coffee and a bagel for 3(ish) bucks then I will go there.

Panera runs me about 2 bucks for a large cup and if I stay there it's a free refil.

There are plenty of other cheaper options out here in da country....

And I have to say DD is shaping up. Most places that have been recently remodeled have a very classy modern look now.
If they add free wifi then starbucks will lose the battle

[K.C.]

if I can get a large coffee and a bagel for 3(ish) bucks then I will go there.

Panera runs me about 2 bucks for a large cup and if I stay there it's a free refil.

There are plenty of other cheaper options out here in da country....

And I have to say DD is shaping up. Most places that have been recently remodeled have a very classy modern look now.
If they add free wifi then starbucks will lose the battle


A few of the DDs around here have Free WiFi already.

I think they're only targeting it near schools, or business areas, though...that seems to be where they offer it.

[ChrisTheCop]

A few of the DDs around here have Free WiFi already.

I think they're only targeting it near schools, or business areas, though...that seems to be where they offer it.

Apparently NOT the CEO of Dunkin Donuts:
http://tbn0.google.com/images?q=tbn:o6Cg2-T2wb8nMM:http://www.superchefblog.com/images/marlonbrando_godfather.png

[tele7]

http://bestinshowonline.warnerbros.com/images/wegman_3.jpg

[IamPixie]

http://bestinshowonline.warnerbros.com/images/wegman_3.jpg

:lol:

For a regular coffee I prefer DD. For a special occasion lattes, Starbucks is really the only choice.

[Bob Impact]

DD tastes like the shits it gives.

This isn't a rarity, they over expanded and are now curtailing that growth.

[mikeyboy]

I think there's a couple things behind it.

First, I think they're trying to avoid a Krispy Kreme type meltdown. Krispy Kreme is the classic example of a franchise that over-expanded so much, that it basically got crushed under it's own weight, and hasn't been the same in years.

Instead of trying to ride it out, they're just going to make their cuts now and reassess to save some cash.


The second, is I think Starbucks is getting out-classed all over the map by Dunkin' Donuts right now.

Most Dunkin' Donuts (at least around here) are 24 hours, it's cheaper, they've farmed out a full breakfast menu over the last few years (as opposed to just Donuts), and I think they've invested a whole lot more in their advertising.


And honestly, if I'm drinking chain coffee, I think Dunkin Donuts has better coffee right now.

Starbucks needs a new angle.

All of Dunkin Donuts' hot foods seem to taste like ass though. Is everything heated in the microwave?

[K.C.]

All of Dunkin Donuts' hot foods seem to taste like ass though. Is everything heated in the microwave?

They claim it's some super top secret Dunkin Donuts device they use to heat the food, hence the stupid commercials where the guys are toasting the food with welding flames.

But yeah, it's basically a large microwave.


As far as fast food goes, I don't think the breakfast stuff is any worse than most fast food places.

I would NEVER eat the frozen pizza thing they're trying to sell now, though.


Their donuts have kind of blown ever since they stopped baking them in store...they're all frozen and just heated up now and it's been that way for years.

Don't get me wrong...I don't really prefer Dunkin Donuts...I have coffee shops I go to...but I would, and do take over Starbucks when those are my only options.

[~Katja~]

All of Dunkin Donuts' hot foods seem to taste like ass though. Is everything heated in the microwave?

I noticed they were not even allowed to toast certain items for a while until recently they started using a new kind of oven... like a convection type of thing but faster like a microwave... it actually gets toasted... I don't want to know how many years before the first case of DD cancer is discovered....

[OGC]

All of Dunkin Donuts' hot foods seem to taste like ass though. Is everything heated in the microwave?


You heard it here first. St. Mikeyboy of the internet eats ass. Who would have guessed with that squeaky clean image he shows the world.

[led37zep]

And honestly, if I'm drinking chain coffee, I think Dunkin Donuts has better coffee right now.



Same here.

[Marc with a c]

Same here.

you're both asses.

[led37zep]

you're both asses.

This kind of talk is going to result in mikeyboy being left in Maryland.

[underdog]

a cup of coffee at starbucks is the same fucking price as it is at dunkin donuts.

I don't think people realize that when they're "comparing" the prices, they are comparing a specialty drink at Starbucks against the regular coffee at Dunkin Donuts. The specialty shit at Dunkin Donuts is also the same price as Starbucks, only not good.

[oh_kee_pa]

1 - Dunkin Donuts coffee > Starbucks coffee... regardless of price
2 - Starbucks specialty drinks > Dunkin Donuts specialty drinks
3 - Starbucks specialty drinks are more then the avg. person can afford w/ 4.50 gas prices
4 - Starbucks prices are so high because of the benefits, which they extend to part time employees...

[K.C.]

I don't think people realize that when they're "comparing" the prices, they are comparing a specialty drink at Starbucks against the regular coffee at Dunkin Donuts. The specialty shit at Dunkin Donuts is also the same price as Starbucks, only not good.

It's a trade-off, though...most people going to Dunkin Donuts are grabbing a regular cup of coffee, so it's quicker.

For me, the only time I go is when I don't have time to sit in my local coffee shop, and that means I'm usually in a hurry.


By the way, Wawa blows away both DD and Starbucks coffee....if only the rest of the country knew of the Wawa magic.

[badorties]

I don't think people realize that when they're "comparing" the prices, they are comparing a specialty drink at Starbucks against the regular coffee at Dunkin Donuts. The specialty shit at Dunkin Donuts is also the same price as Starbucks, only not good.

the price points are the same ... i think you get a few more ounces (of shitty tasting coffee) at Dunkin Donuts

[ChrisTheCop]

The trick is to find a nice corner deli that knows how to brew.

When I'm on the 'UES' I stop at 84st/2ave. Hawaiian Hazlenut Rocks.

[donnie_darko]

um, people don't go there for the coffee, its the atmosphere.

if you really wanted some coffee youcould buy a bag for the price you spend on two cups.

[underdog]

1 - Dunkin Donuts coffee > Starbucks coffee... regardless of price

If you like weak, burned coffee, then, yes, I'd agree with this statement.

Dunkin Donuts used to have great coffee, but it sucks now. In fact, I keep seeing more and more tradesmen and police officers in Starbucks. Waaaay more than I used to see.

2 - Starbucks specialty drinks > Dunkin Donuts specialty drinks
3 - Starbucks specialty drinks are more then the avg. person can afford w/ 4.50 gas prices

But so aren't Dunkin's specialty drinks. They're the same prices.

[Stankfoot]

4 - Starbucks prices are so high because of the benefits, which they extend to part time employees...

those bastards!

[Kit the Eskimo]

I saw this at work and my first thought was "I hope they don't close any of the three down on the first floor"

I'd hate to have to wait more that 5 minutes to get my fix on my way into work.

[Freakshow]

um, people don't go there for the coffee, its the atmosphere.


Really? What kind of flair do they wear at starbucks?

[IMSlacker]

Here's the list of 600 Starbucks locations that will be closing. (http://www.huffingtonpost.com/2008/07/18/starbucks-closure-list-al_n_113646.html) You can find out if your location made the cut.

[IMSlacker]

The "End of the Universe" locations both survived, btw.

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[Zorro]

a cup of coffee at starbucks is the same fucking price as it is at dunkin donuts.

Yeah, but it doesn't have that hint of curry that makes it so enjoyable