Jul 30 2008
Sympathy for Starbucks?
I’ve been watching with fascination in recent weeks all the developments going on at Starbucks. What began with a relative whimper and the closure of several hundred stores today crescendoed to a bit of a yelp. Starbucks announced today its first-ever quarterly loss: $6.7 million in its third quarter of 2008.
But, don’t go crying in your double, tall, half-decaf mocha with no whip just yet. In the same report, Starbucks also reported an increase in net revenue. It still begs the question, though. Are the glory days over for Starbucks?
I’ve been known to drop some serious cash at my neighborhood Starbucks (and, probably your neighborhood Starbucks, too). My recent favorite was a sugar-free cinnamon dolce soy latte. Definitely good, but definitely not cheap. I have cut back drastically on my Starbucks consumption (which may explain why their profits are down - sorry). My husband wanted me to boycott Starbucks altogether because of the Sonics fiasco, but he quickly learned that was not a battle worth fighting. It’s not the gas prices driving me away, but I can see how that has a lot of customers steering their cars away from the nearest Starbucks. What may have been a daily fix for some people has probably turned into a weekly treat instead.
What I don’t understand, though, is those reveling in the latest Starbucks troubles. Some people see Starbucks as the ultimate evil corporation. People don’t like that Starbucks could put smaller, independent stores out of business. But, if the insane numbers of drive-through espresso stands in Spokane are any indication, that doesn’t really seem to be a problem. The stories I’ve seen on Starbucks seem to show the realization of the American dream more than anything. Yes, they’re a giant. Yes, they’re wildly successful and infiltrating our lives. But, it’s an American company - a Northwest company - built from the ground up. It has reached nearly every corner of the world and taught most of us that coffee is more than just black with a little cream and two sugars. I was elated to walk into a Starbucks down the street from my hotel in Athens, Greece. It was nice to get a little taste of home. If anything, it has helped the independents thrive by increasing the knowledge and desire for designer coffee.
I’m interested to see what Starbucks does now to try and change the game in its favor again. I’m also interested in what you think. Do you feel bad for Starbucks and the economic issues now facing the coffee giant? Have you cut back on getting your Starbucks fix? As for me… I’m just upset they eliminated the decaf Frapuccinos. Until the six Starbucks stores I pass on my way to work close, you won’t see me crying in my coffee.
(2 votes, average: 3 out of 5)
Loading ...
Anytime people lose their jobs, it is not good. Starbucks has taken a hit, but they are still in the game.
I hope this is not their solution for keeping profits. I was recently a little taken back with their downsized drink cups. I got my favorite summer drink — a sweet passion tea lemonade and it came in a cup about the size of one of those little paper kitchen cups. The straw looked like a flag pole and three sips later it was all gone. When the girl handed me my drink, I must have looked surprised, because she said sorry without me even saying a thing.
I wish them luck, but I’ve moved on. Sonic has a less prestigious but nonetheless tasty cherry limeade — and it’s cheap and huge.
I’m amazed first of all that you will admit to lowering your standards for a cheaper larger beverage that is made of fake products. Second of all Starbucks hasn’t changed their cup size.
I bought my drink at a Starbucks imbedded in a Target store near my home. It was decidedly smaller whether it was this shop’s switch or a mistake. I didn’t go to another Starbucks to check if they were selling the same drink in the same size cup. I have no problem putting value over perceived quality. To each their own. Starbucks not Sonic is setting their profit margin on my patronage becuause it isn’t that frequent for either one.
I’m pretty sure she wasn’t talking about the food chain Sonics, but the fact that the basketball team is moving to OKC…