Starbucks sees decline in US, but when will it happen in the UK?
Starbucks Corporation is to close 600 company-operated US stores in the next year, a considerable hike from its previous plan for 100 closures. It’s a potent indicator of just how screwed the US economy is, but we can only wonder how long it will be before the company starts shutting up shop around the world, particularly in Britain, where many alcoholic drinks in pubs cost far less than Starbucks-branded concoctions.
In the US the cutbacks will impact on over 12,000 workers. Starbucks claims that most of the employees will be moved to nearby stores, and so a spokesperson did not ‘know exactly’ how many jobs will be lost. What a fortuitous expression of ignorance that is, given that job losses never make for news stories onto which a positive spin can be applied.
In May, Starbucks said its second-quarter profit sank 28% has US consumers cut back on visits in light of rising food and gas prices. Yet Americans have never had to swallow, along with their cappuccinos and skinny lattes, the prices that thousands of Brits have seemed willing to pay for many years. A group of four people—say two parents, two children—going to a UK Starbucks and buying for all, just drinks, is lucky to get change from a £20 note (that’s $40 US dollars). Add a few sandwiches to the mix, maybe a muffin or two, and it’s easy to end up spending over £30 ($60 US dollars). It’s all way too much moolah to be spending on coffee when belts the world over are tightening.
tags: coffee, corporations, depression, recession, spending, Starbucks
