More Trouble for Starbucks

Matthew Tully writes in The Indianapolis Star of the closing of another Starbucks, noting the particular sadness of this failure. Here's a snip:

While an empty Starbucks in a suburban strip mall is annoying, those in areas that have struggled for years to emerge from rampant crime and a lack of development are sad.

"We really were excited to have them there," state Rep. Greg Porter said. "We thought of (the stores) as something that could help solidify the efforts the community has been making."

Tully reports that Starbucks had made an effort to open stores in economically troubled areas, but in this current economic downturn, it cannot afford any risks against its bottom-line.

Read the entire article: http://tinyurl.com/d5oj8j

January 28, 2009 Update: Starbucks to cut 6,700 jobs, close 300 stores: "The company also plans to eliminate about 700 corporate jobs, including about 350 at its corporate headquarters in Seattle."

February 9, 2009 Update: Starbucks Plays Common Joe: "On Monday, the company plans to announce that it's selling discounted pairings of coffee and breakfast food for $3.95, a type of promotion long used at fast-food chains. It's the first move in an aggressive campaign to counter the widespread perception that Starbucks is the home of the $4 cup of coffee."

February 11, 2009 Update: Starbucks begins announced job cuts with 1,000 layoffs: Among those layoffs, "About 870 assistant store managers were notified that their positions were eliminated, Starbucks said in a statement."

Note: This blog-post is also accessible via http://www.tinyurl.com/starbucksnews