Starbucks closing some stores

[phma]

Starbucks best contribution to a community is being a public toilet.

That wouldn't be a place I'd go to drink coffee but its nice that the homeless have a place to take a dump besides the sidewalk.

[James Bond 007]

Originally Posted by jm1982

This is what happens when you take an anti business stance . The liberal cities loss will be the Midwest and souths gain .

Huh? The cities in the South and Midwest they are likely to open new stores in are going to be as liberal as the ones they're closing stores in.

[Avondalist]

Originally Posted by Travel Crazy

(How does she keep her leadership roll, I will never know. She probably blackmails her colleagues.)

The reverse, she bribes them with donor money raised from the Bay Area.

[Ohiogirl81]

Originally Posted by Kibby

It's the high density, high homeless area that Starbucks is pulling out of.

And likely there's another Starbucks a few blocks away from the location that's closing.

The company's business model is to open a boatload of locations, wait, and later close stores with the lowest sales in a specific radius.

[middle-aged mom]

Another thread on the same topic was created yesterday morning.

//www.city-data.com/forum/polit...me-stores.html

One of the posts makes reference to a comedy routine based on the reality of 2 Starbuck's, right across the street from eachother.

Big brands have a tendency to over saturate in some markets and then contract.

Walmart, Sam's, Target, HD, Lowes, McDonalds and so on have all over saturated some markets and eventually closed stores.

[sware2cod]

Starbucks also said high occupancy rates are causing issues with profitability.
In other words, the rent is too high.

[middle-aged mom]

Originally Posted by sware2cod

Starbucks also said high occupancy rates are causing issues with profitability.
In other words, the rent is too high.

Landing a Starbucks is a commercial developer's dream. When a Starbucks moves in it tends to attract other businesses and causes rents to rise.

[Sactown4]

Originally Posted by middle-aged mom

Another thread on the same topic was created yesterday morning.

//www.city-data.com/forum/polit...me-stores.html

One of the posts makes reference to a comedy routine based on the reality of 2 Starbuck's, right across the street from eachother.

Big brands have a tendency to over saturate in some markets and then contract.

Walmart, Sam's, Target, HD, Lowes, McDonalds and so on have all over saturated some markets and eventually closed stores.

Thanks for saving me the time of finding the link.
The thread yesterday explained how this is standard protocol for Starbucks. They'll open many stores, find the most profitable ones, and close the worst performers.

Obviously, that made it harder to blame it on liberals and minimum wage, so I guess we try again?

[jm1982]

Originally Posted by middle-aged mom

Landing a Starbucks is a commercial developer's dream. When a Starbucks moves in it tends to attract other businesses and causes rents to rise.

Yeah I guess it would suck if you opened near one of the Starbucks that is closing thinking it was going to help bring in more business and then it closes but you are stuck with a high lease .

I can’t imagine they’ll get something better or the same as Starbucks to move in .

I also wonder how much the theory works that Starbucks helps neighboring businesses . I remember there was a place in a center with a drive thru Starbucks and they had a petition to make them move the entrance of the drive thru because it was affecting their business .

Guess it would be interesting to see if neighboring businesses see an increase in business when a Starbucks moves in .

[pknopp]

This has very little to do with "left wing policies". Quite the opposite.

Most local restaurants can’t simply pick up and leave, but Starbucks and other large chains have more flexibility. Johnson said “it’s middle America and the South that presents an opportunity.”

A local business has no reason to close up and leave. Their business model is not dictated by Wall Street. The Starbucks in any certain city may still very well be profitable BUT not profitable enough for Wall Street investors. That is why they close.

Can you call Starbucks hypocritical over this? Sure, probably so.