Flash in the Pan

Yesterday, Starbucks announced that it would be closing "600 underperforming company-operated stores in the U.S. market, which includes our previously announced plans to close 100 stores," according to A Message from Howard. He started with all the wonderful things that happened since becoming CEO again, and mentioned such upcoming things as the introduction of "healthy, good-for-you beverages" starting July 15. (Healthy? Good-for-you? Is this still a coffee spot?)

In addition, in Southern California, we will introduce a refreshing, indulgent cold iced beverage. Steeped in Italian heritage, it will be an exclusive product that our customers can only find at Starbucks.

Sure, other companies will probably call it something else once they lift the concept. But then came the bad news - under performing stores would close, full- and part-time employees would lose their jobs. At least they say they'll be offering employees either a position at a nearby store (though once you're out of major cities, heaven knows what "nearby" will mean) or some severance. And given how they have benefits even for many part-time workers, I can't fault them. The chain simply expanded faster than its audience.

I even have some sympathy for CEO Schultz. Clearly he's been torn between the business becoming enormous and wanting the atmosphere of a cafe with comfortable seats for deliberate loitering over a cup of coffee and the smell of freshly ground beans in the air. But you can't be big and neighborhood at the same time, which shows that even success doesn't mean that you'll be happy and free of conflict.

Now, if only they'd stop over-roasting their beans.

Labels: business, coffee, Starbucks