Archive for July, 2008

600 Starbucks shut down, what does this mean for the CrimsonCup Community?

July 3rd, 2008

You may have heard the news that 600 Starbucks are shutting their doors. It’s easy to blame this type of operational shift on the economy, but the economy has little to do with these stores shutting down. Sure the cost of goods have risen, but this hasn’t stopped the public from buying $4.00 coffee drinks. So why would Starbucks close 600 stores? Here are our thoughts on the Starbucks closings and how this change impacts the CrimsonCup community and other independent coffee houses…

Recently, Starbucks has started becoming less of a specialty coffee roaster and retailer, and more of a corporate fast-food franchise, aligning their interests with the likes of McDonalds and Dunkin Donuts. Their growth has mirrored these corporate giants, and consequently they have over saturated the market. This rapid growth has led to a decline in quality goods and services. Starbucks Chairman, President, and CEO Howard Schultz stated in the Starbucks press release regarding the store closings that, “…(they are) focused on enhancing operating efficiency, improving customer satisfaction and ensuring long-term value for our partners, customers and shareholders.” Consumers are starting to notice the decline in quality, and are going elsewhere for their coffee. This is great news for independent coffee shops!

Quality independent coffee shops, like the shops in the CrimsonCup Community, are able to fill the void in specialty coffee that Starbucks has left by providing quality, consistent drinks and service while supporting their communities. Our independent coffee houses continue to grow and adapt to the changes in our economy without falling prey to the pitfalls by sticking to our philosophy of quality, consistency, and leaving people feeling better. So while the media would lead us to believe the economy has led to the closing of 600 Starbucks locations, the truth is Starbucks has led to their own decline.