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Old 07-02-2008, 05:08 AM
 
26,662 posts, read 40,645,423 times
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Quote:
Originally Posted by Cruikshl View Post
I love their frappuccinos nobody does a frozen drink like Starbucks. Hopefully they won't kill the one in my Target
The frappuccinos are good but also expensive and do you know how much calories there are in the Starbucks drinks....?

I guess it is not the healthiest franchise, so maybe a lot of people will save money and calories when they close their doors....on the other hand it is sad for the people losing their job, but they also have to blame Starbucks.

Starbucks is also in our Target and 2 month ago the opened a brand new one accross the street....how is that if one of them is a franchise....they kill their own stores, way to close to each other....are the Starbucks people so stupid not to realize that.
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Old 07-02-2008, 05:44 AM
 
Location: NC native in Houston
190 posts, read 533,695 times
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Quote:
Originally Posted by travelmate38 View Post
The thing most here have overlooked is that for unskilled work, Starbucks was huge. It provided livable wages to tens of thousands of lower middle class Americans. A starting wage at most starbucks was about $12 an hour. Not bad for making a cup of frothy coffee. Plus they offered a very lucrative benefit package that offered a family health care plan, 401K and even retirement. The average person who worked at Starbucks for 5 years made a salary of over $30,000 yearly, plus medical, dental vision. etc.
I'm not sure where you are getting your starting wage numbers, but $12/hour as a starting wage at most Starbucks is grossly inflated, unless you are talking about upper management only. Most baristas (even in areas with HIGH cost of living) generally start out around $7-$8.50/hour. Shift supervisors usually start out around $8.50-$10.00/hour, again, depending on the market area. Even for baristas/shifts working 5+ years, $30,000 a year isn't what they are taking home. Keep in mind, MOST baristas work ~20-25 hours a week, some much less. Shifts do tend to work more, but a lot of them never see 40 hours a week.
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Old 07-02-2008, 06:08 AM
 
Location: Piedmont NC
4,597 posts, read 10,578,774 times
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Heard this on the news this morning, and couldn't help but wonder about the new Starbucks -- a couple of them, no less -- where I am. I keep hearing how the general Raleigh area is 'buffered' from some of the recession, so I'll be interested in seeing if that is true when it comes to Starbucks' closings.

I would think the coffee shops that are part of another store, like the one in Target, or those set up in Barnes & Nobles Bookstores, would be safe. How could they not be making a good profit?

It has been rumored for some time, hasn't it, that Starbucks was re-structuring itself, and was having difficulty now that places like McDonald's feel like they can compete? I'd like to participate in a blind taste-test as I can't imagine any coffee McDonald's serves can compare.
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Old 07-02-2008, 09:28 AM
 
3,031 posts, read 8,433,316 times
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Wow, I guess I'm glad I turned down the job offer w/ Starbucks (marketing) about 18 months ago. I've been-there-done-that with companies in a decline and it's no fun going to work every morning wondering if the axe is going to fall.

Anyway, my thoughts on Starbucks: First of all, I lived in Seattle way back when when Starbucks was one specialty store at Pike Place Market. In a coffee-crazed society such as exists in Seattle, it was wildly successful. People went out of their way to visit the store. You could get whole, fresh beans there too. What a concept at the time! And from my time spent in the Bay Area, I knew that the founders of Starbucks were originally all partners at Peet's, then two broke off, moved to Seattle and opened Starbucks.

What happened in the ensuing years is that they lost their "special-ness". What's special about a company whose beans you can find in the grocery store aisle (Peets is now making this mistake too), where you can't swing a dead cat in some cities/burbs without hitting a Starbucks store, where Starbucks is in Target and other mass-merchandisers, etc. For a family who used to special order their beans from a specialty roaster in Pioneer Sq when we moved East (until Starbucks bought them ::sigh:, the "McDonaldization" of Starbucks was too much. The only positive thing I can say is that when I'm in a new location/strange city and want a latte, that's where I'll go because, like McD's, it's so standarized you know what you're going to get. But at home I won't go near the place.

The other thing they did was to standardize. Making a cappucino, latte, espresso is an art. Pushing a button on a fancy machine is not. Nothing special to justify the outrageous prices when there are better places to spend money in this economy.
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Old 07-02-2008, 09:38 AM
 
Location: Boise, ID
1,356 posts, read 5,592,974 times
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Quote:
Originally Posted by travelmate38 View Post
The thing most here have overlooked is that for unskilled work, Starbucks was huge. It provided livable wages to tens of thousands of lower middle class Americans. A starting wage at most starbucks was about $12 an hour. Not bad for making a cup of frothy coffee. Plus they offered a very lucrative benefit package that offered a family health care plan, 401K and even retirement. The average person who worked at Starbucks for 5 years made a salary of over $30,000 yearly, plus medical, dental vision. etc.

I never used Starbucks, I have a $2000 Italian espresso machine and have made my own lattes for years at about 25 cents each. BUT my point is, all those jobs are lost and what are those people going to do? Just add more and more pressure to blue collar workers and jobs, thus lowering the wages and benefits for us all even further. The reverse trickle down affect is well under way folks. Watch, listen, learn, history is repeating itself right before you eyes! What history you ask? The great depression. Fasten in tight, it's going to be a wile ride..........
I don't know if your figures are correct or not but let's assume they are close. They have a great business model for making a lot of money in a relatively short period of time. They have an unsustainable business model over the long term. But you can't point to the troubles of Starbucks and then make an assumption about the economy at large.
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Old 07-02-2008, 11:14 AM
 
159 posts, read 487,180 times
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So, what happens to all that equipment that was in the 600 stores? Can a JoeSixPack buy a good used espresso machine on the cheap?
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Old 07-02-2008, 11:25 AM
 
Location: Northern California
3,700 posts, read 13,420,062 times
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Quote:
Originally Posted by ChicagoRon View Post
Starbucks Corp (SBUX.O) said on Tuesday it plans to close another 500 underperforming stores
What's the big deal?? There will still be 8 million Starbucks coffee shops left.
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Old 07-02-2008, 11:32 AM
 
Location: Charlotte, NC (in my mind)
7,946 posts, read 15,403,590 times
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There will be more closings. Starbucks will thin the herd until there are a few urban and suburban locations left in the urbanized markets. As I said before, small town stores need to go.
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Old 07-02-2008, 11:59 AM
 
Location: The Great State of Texas, Finally!
5,370 posts, read 11,046,121 times
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Quote:
Originally Posted by norcalmom101 View Post
You know, I'm a Peet's snob, and McD's coffee is actually pretty good. Good business move!
Dunkin Donuts has great coffee. ALways has. My dad's been drinking the stuff since I was a kid and swears by it.
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Old 07-02-2008, 12:29 PM
 
26,662 posts, read 40,645,423 times
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McDonalds has great coffee for $0.99!
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