Starbucks – Too much of a good thing?

Posted on by Steve Sammartino

“I’ll meet you at the Starbucks.”

“Which one?”

“The one on Broadway.”

“Like I said, which one?”

 

 

Starbucks has just announced the closure of 600 US stores, and in doing so wiped out 12,000 jobs.

 

I couldn’t have put it better than Marketing savant David Bloustein:

 

Growth via distribution will only take you so far right? Did anyone stop and think that 5 stores next to one another across the US might somewhat diminish performance for the individual stores?

4 thoughts on “Starbucks – Too much of a good thing?”

  1. Good Morning/Afternoon –

    Sorry to jump into the Satrbucks convo but I got the following e-mail that seems to come from you so I thought I would reach out, say “hello” and thank you for your interest in Fizz. If, on the off chance, the e-mail we got is some kind of well written SPAM then that would be an interesting conversation starter as well.

    Ted

    Hi, fizz_womm.

    startupblog (startupblog) is now following your updates on Twitter.

    Check out startupblog’s profile here:

    http://twitter.com/startupblog

    You may follow startupblog as well by clicking on the “follow” button.

    Best,
    Twitter

  2. Hey Ted,

    This is some ‘very well written spam’. I’ve had a bit of it lately too – I coined it ‘Maps’ reverse ‘Spam’…

    They follow people on twitter or create blogs which link to yours so you backtrack to check it out. Not sure how it gets their message across, or whether there is something more sinister behind it?

    Let the conversation begin!…..

    I’m on twitter though: http://twitter.com/sammartino

    Cheers,
    Steve

  3. Steve,

    I might say that Starbucks’ overall business model forced the shuttering of those stores. Really expensive coffee can only go so far. Consumers are cutting back and competition from the likes of McDonalds, Dunkin Donuts at a lower cost is eating into their margins. Plus you had to know something was up when they closed those stores a couple months ago for “re-training”.

  4. In Krabi I just went for a walk looking for coffee but walked past a fruitshake street vendor and ended up with a mango+ice mix for $0.61 instead! I was on the way but didn’t make it to the Starbucks but now I’m really curious how much they cost..

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