Monday July 14, 2008 | 10 comments
If you live in an American city, you’ve no doubt heard the lament, “There’s a Starbucks on every corner and another one on every other corner.” Competing coffee houses – apparently on every other every other corner – sported bumper snickers, “Friends don’t let friends drink Starbucks.”
On July 1, Starbucks announced that it was closing 600 non-profitable stores nationwide, with plans to open just 200 new stores in the next year. For a company known for squamous expansion practices, this announcement made stockholders and independent coffee houses very happy.
We tea drinkers should be ecstatic, and making plans . . . what if tea rooms and tea houses were to take over those 600 empty Starbucks stores? Imagine being able to walk a few blocks from work or shopping and sit down for a comfortable and delicious cup of whole leaf tea. This would be the place to introduce people to tea in a comfortable setting.
The photo on the home page looks like M.C. Escher had a few too many shots of espresso!
I’m curious to learn if the closing of the stores is reflective of the economic crisis that we’re in. Does this mean that people just can’t afford to spend $4 for a fancy coffee each day or were there just too many Starbucks per block?
Apparently, both facts played into the decision. If I understand the article correctly, Starbucks said the 600 stores are either unprofitable now or are not expected to meet future return thresholds. All of the targeted units are close to another company-operated store, and many analysts were critical of the marketing cannibalism created when some single blocks in large cities like Manhattan had not just one or two, but several Starbucks. And, stores targeted for closure first are those in areas hardest hit by the housing and mortgage crisis of the last several months.
We just took over a coffeehouse that had been up and running five years. The new owner (one year) had no passion and wanted it as an outlet for his roasting hobby. It is beautiful after some paint and tea taking the prominent position! ;)
We are looking for others as well, including empty Starbucks in our area should that happen.
Here’s something that won’t make Starbucks any happier:
http://adage.com/article?article_id=129585
By the way..paint is not taking a prominent position, as my post above made it sound! ;)
Tea is.
This Decision has been in the works for several years (received this info from an inside source). This is what happens when a company expands nearly out of control, and it receives a massive market correction from the public. Maybe now is the time for TEA to capitalize on this beverage industry paradigm shift??….PJF
I know I’m going to sound pretty pretentious admiting this… but I’ve only been to Starbucks once in my entire life and I only bought Bumbershoot tickets.
we are all in to support in any way reqd for opening up of new tea houses. i can imagine even if 50% of these shops are converted into tea houses.. they will really help in the propaganda of tea and its benefits..
Regina,
I agree with you, that pic does look a bit like an M.C. Escher print :)