photo credit: nedrichards
Starbucks announced yesterday that they will be closing another 300 stores as demand for the pricey coffee continues to decline. According to a memo sent out by Howard Schultz, Starbucks continues to be challenged in this tough economic time. I have written a couple posts about my Starbucks addiction and how I was spending over $2,000 a year on coffee. I guess more customers have taken business to Dunkin Donuts or now do what I do and brew Costco Starbucks beans. It’s actually more convenient to brew my own coffee as I don’t have to wait in line or drive to a local Starbucks. My beverage of choice back in 2007 was a cafe Americano which is espresso and hot water. I’ve downgraded a bit, but still love saving a ton of money by brewing my own morning Joe.
Are you a Starbucks addict? Will you miss your local Starbucks if it closed?
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Wow – $2,000 a year in coffee? I love coffee too, although I prefer McDonald’s over Starbucks. I heard that Starbucks will no longer brew Decaf in the afternoons and evenings to cut costs.
@PFincome
Yep, I spent over $2k a year on Starbucks. I bet they would be willing to make a decaf Americano, which is basically the same as a cup of decaf coffee. I wonder if Starbucks would ever consider lowering prices to try and increase sales. Probably not.
I love Starbucks coffee, too. But I’ve cut back on my visits there as well. When I do go I’ll often splurge on some of those fancy drinks. Gingerbread Lattes are my fav.
I’ve been watching them – and their website and stock – for a while. They don’t seem to have adjusted with the times. For example, if they had more fair trade and organic coffee, I think that would pull in a certain customer that they’re not getting right now.
Also, even when they say they are, they’re not giving anything away. They just started a new program where you pay $25 for the year and get, supposedly, all these cool discounts. But when I looked at it the deals closely, the card doesn’t pull its weight at all.
@ Greener Pastures
Pete’s Coffee has more options for fair trade as does Trader Joe’s and other retailers. I guess Starbucks is focused on mass production coffee.
The other side of the coin – Bad news if you work at Starbucks and your store is closing. 300 stores sounds like a large number of part-time jobs getting cut as well. And considering Starbucks is one of the few employers that offers health care and benefits to part-time employees, this could be considered a blow for those who rely on their job at Starbucks. For example, those working an extra job to supplement their income.
Relying on a store to shut down is a pretty heavy handed solution for saving money. If you didn’t have the willpower to stop buying a stupid cup of coffee, I have a feeling you’re more likely to find another store to buy that coffee, than to give up buying the coffee entirely.
@ Mike
You are absolutely correct from the jobs standpoint and potential loss of health care for thousands of employees. This is a bad situation for them right now. I used to work at Starbucks when I was in college, so I do feel for the people losing jobs right now when stores are closing. With people having to cutback on expenses, Starbucks and stores like Jamba Juice will probably suffer. I meant that Starbucks was a way that I spent over $2,000 frivolously and now the temptation will be reduced for many people in a similar situation. Should I have set a budget for coffee and stuck to it? Absolutely. Do other people purchase a $4.00 latte and charge it to Visa. Sure. Should we all brew coffee at home and save money? You bet. With this current recession I’m sure more and more people will be dusting off the coffee makers and brewing the morning Joe at home.
pfincome – it sounds like a lot but I do not think this is atypical for many people – in fact I know lots who spend way more than this! seems crazy though eh – just think of how the money could be spent… Scott, what are you going to do with all the money you’ll save?
@ Saver Queen
Great question. Since I was spending $2,000 a year and we didn’t have CC debt, I started 529 accounts for our kids. I started with $1,000 in each account and now contribute $100 a month for each child. Comes out to $2400, the amount I spent at Starbucks. So technically, Starbucks will send my kids to college