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Starbucks loses its froth

editor

hiraethified
Looks like frappucino fail.
Coffeeshop giant Starbucks has announced it will cut around 6,700 jobs and shut 300 stores as it reported a 69% plunge in quarterly profit.

Starbucks has struggled as hard-up consumers are forgoing expensive lattes and frappucinos as the recession bites.

It said it made a net profit of of $64.3m in the 13 weeks to December 28, down from $208.1m a year ago.

Two-thirds of the store closures will be in the US and they come on top of the 661 closures announced in 2008.
http://news.bbc.co.uk/1/hi/business/7857316.stm
 
Somehow I find it hard to feel much compassion, for the company anyway. The sacked staff of course are a different matter.
 
file overpriced coffee alongside gym memberships - totally unnecessary consumer products that boomed in the last decade which will die a death in a recession
 
Isn't their strategy to flood the market and the once established shut down a load of superfluous stores anyway?
 
They seem to have overtaken McDonald's as the face of evil capitalism.
Sad for the staff of course...

I guess now that pubs are non smoking and a lot are offering coffee may have had a hand in this too?
 
Isn't that the point, Kanda? People looking closely at their outgo are likely to put that grand a year near the top of their "must cull" list.
 
The thought of the gym actually sickens me more than Starbucks.

£1000 a year?!?!?!?!?!?!

Buy bike
Buy some weights if that is your thing
Go to the park or just go for a fucking walk
Spend the rest of the money on something worthwhile

:)
 
I see the connection I think
Coffee places seem to be used mostly by commuters and office bods
Gyms seem to the morning/lunch/after work routine for people who spend all day in a chair

As less chairs are being sat on and less money is being earned the cappuccino and the 45mins on the treadmill watching MTV at the cost of about £5 a day (£1825pa) has to be high on the list of 'luxuries' you have to lose.

Maybe I have it wrong though?
 
Really? You really don't see the financial connection between easily cut expensive luxuries? And how their success might both be correlated with the amount of disposable income sloshing round the system? And how this heavy correlation with the wider economic conditions will make them correlated with each other?

Kanda, don't tell the people you work with about your failure to see this connection; they'll fall about laughing if you do :)
 
Really? You really don't see the financial connection between easily cut expensive luxuries? And how their success might both be correlated with the amount of disposable income sloshing round the system? And how this heavy correlation with the wider economic conditions will make them correlated with each other?

Kanda, don't tell the people you work with about your failure to see this connection; they'll fall about laughing if you do :)

I don't see why it was bought up in a thread about coffee, just another thing to swipe at I guess. Of course I see it's a luxury that could be cut.

Anyway, I've just joined so I'm bucking the trend :D
 
Government bail out for Starbucks?

Go on, please do it.......please........I will then resign my position as a member of the human race!!!
 
Oh, I think the thread was about the general trend of the market and Starbucks was just the indicator du jour. Not that it was particularly revelatory or anything -- we all know what direction things are going in right now!

Anyway, the Kanda index obviously has a strong negative Beta with the Starbucks index. Hedge funds should buy Kanda ASAP.
 
Oh, I think the thread was about the general trend of the market and Starbucks was just the indicator du jour. Not that it was particularly revelatory or anything -- we all know what direction things are going in right now!

Anyway, the Kanda index obviously has a strong negative Beta with the Starbucks index.

I thought it was the Kanda spectrum?

I forget how Urban works these days, must be all the (freeze dried) coffee I drink or something?
 
Anyway, the Kanda index obviously has a strong negative Beta with the Starbucks index. Hedge funds should buy Kanda ASAP.

:D:D

About 15 people here have joined, that's where my piss take about 'not when they charge a grand a year' came from
 
The reason people aren't going to Starbucks is because McD's, BK and KFC are now all offering cheaper coffees with the same faff. People haven't stopped buying coffee, they've just stopped wanting to spend £2.85 on 3/4 pint of warm milk and a double espresso.

All this means is that SBs worst performers - mainly the 'spoiler' outlets that are opened to flood a local market and drive out local traders - will suffer as the company withdraws from the 'loss leader' business model, specifically with regards to business rents (which is how they were able to push many local traders out).
 
Yeah, but you never went in the first place, hence you aren't part of the group moving from Starbucks to the fast food chains. Therefore you aren't even part of the story.
 
A straightforward standard-sized Starbucks drip coffee costs £1.55. There are plenty of places out there that will charge you a lot more than that.
 
I'm not spending two quid on a coffee, that's mugs prices(lol)

unless there was a shot of whiskey in it, then that would be a bargain
 
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