Starbucks To Close 600 Stores In 2009

The Vast Majority Of The Doomed Stores Opened In The Last Two Years

(AP)  Starbucks Corp. said Tuesday it will close 600 company-operated U.S. stores in the next year, up dramatically from its previous plan for 100 closures, a sign the coffee shop operator is still feeling the pain from the faltering U.S. economy.

Starbucks said in a statement that 70 percent of the stores to be closed were opened after the start of 2006. The locations set to close include ones that "were not profitable and not projected to provide acceptable returns in the foreseeable future," it said.

About 12,000 workers will be affected by the closings, which are expected to take place over the next year, according to Valerie O'Neill, a spokeswoman for the company.

O'Neill said most of the employees will be moved to nearby stores, but she did not know exactly how many jobs will be lost.

The company predicted related charges will add up to $328 million to $348 million, but said that after income tax benefits and other changes, it expects to pay about $100 million.

Starbucks also cut the number of company-operated stores it will open in fiscal 2009 in half, to fewer than 200. The company did not adjust its plan to open fewer than 400 stores in 2010 and 2011.

In May, Starbucks said its second-quarter profit sank 28 percent as U.S. consumers cut back on visits in light of rising food and gas prices.

As of the end in March, there were 16,226 Starbucks stores around the world, including 7,257 company-operated stores in the U.S.

[underdogus10]

DEPRESSION A'' COMING....the end of an empire always comes when their currency is destroyed....

[speets-2009]

first sign of the apocalypse.

[sociald63]

finally-

[whitemale08]

this was a scam company to begin with just like WalMart.

The banks that had underwrote the IPO with worthless currency knew in advance that the normal life-span of a luxury franchise is about 10 to 15 years.

Wait to see how many people lost money in their 401k''s and pension fund portfolios.

And Republicans wanted to socialize the risk of these scam companies by privatizing social security.

Boy Republicans play con games all the way around.

[justsane-2009]

so we didn''t need that starbucks inside a starbucks after all...

[u-r-right]

But, let us in on how much the CEO and other top exectives at Starbucks are going to pull in this year.

Yep, a $5 cup of coffee I can do without.

[irliberal]

DEPRESSION A'''' COMING....the end of an empire always comes when their currency is destroyed....

Posted by underdogus10 at 06:46 PM

Our currency is coffee and lattes?

But I do agree that Bush and the repugs have REALLY screwed things up this time. I don''t think they''ll recover.

[sistatee-2009]

At $350 a gallon, Starbucks should close ALL its stores.

[standncount]

awwwww

[annd2302]

Bull ***, just fewer coffee drinkers. When are you going to wake-up and smell the coffee?

[whitemale08]

zoe2006-

Adding benifits to your employees doesn''t make you great.

I was talking about how the company came into existence.

Read my post again...it goes back to the way the financial system is engineered so that the banks that make up the Federal Reserve System monetize instantly all of the money it thinks the company will earn in a 10 to 15 year life-span.

Once that is done then you and I are left to gamble and speculate on whether or not the 10 to 15 year life-span is really true or not.

Now the people who are losing money today because of this story are the people who still has this company in their pension portfolios even though the company is now more then 15 years old. So too bad for them even though Niel Cavuto on Fox kept telling you "buy, buy...buy" keep buying Starbucks.

You see how it works?

Privatize the profits...Socialize the Risks and the debt.

It''s a classic con game from your friends who run the British East India Company Global Financial Empire.

[soldat44]

this was a scam company to begin with just like WalMart.

The banks that had underwrote the IPO with worthless currency knew in advance that the normal life-span of a luxury franchise is about 10 to 15 years.

Wait to see how many people lost money in their 401k''''s and pension fund portfolios.

And Republicans wanted to socialize the risk of these scam companies by privatizing social security.

Boy Republicans play con games all the way around.

Posted by whitemale08 at 07:53 PM : Jul 01, 2008

WTH are you talking about? Good gravy...the weirdness never ends.

[mommakat64]

My husband and I got out of the "stock" business right after he retired in January. We kept watching the stock market fade and decided to save what we had left of our meager 401K...still lost close to $8,000.

I always figured that Starbucks was part of the "Yuppie" ***. Well, the Yups have gone about as high as they''re going to go...too bad that their "down" will also be this country''s down. Neocons are BIG Repug supporters, just like the Yups. Like the saying goes: what goes up must come down.

Too bad we all have to suffer for the Yuppie/Neocons stupidity.

[whitemale08]

zoe2006-

I know it''s a liberal company and concede the point that it does alot of good things for students...It''s probably the best job students can find.

Niel Cavuto was an example of how all of these talking heads on these financial shows on television don''t tell you the truth and how corporations are born today.

Back in the day one would have to work all of their life and hope that whoever inherited the company they built from scratch would expand that company and leave it in the family and exclusively offered shares to its employees.

Now these companies are all based on debt that the Federal Reserve prints out of thin air with no obligation to anyone and that''s what''s killing our economy now.

[mommakat64]

And arrogance. Along with the stock speculators, and the oil future speculators, mortgage speculators, banking speculators. Keep your money in a credit union. This same garbage happened after the Civil War with land speculators, and caused a depression. Then the Depression we''ve all heard about after WWI. We haven''t had one since then, but we''ve sure had plenty of wars.

[whitemale08]

zoe2006-

Here''s something else you need to know about the Federal Reserve System.

Now we have tolerated this system for so long because it has managed to expand credit for consumerism like no other in history.

But the compromise or mandate of the Federal Reserve was that after every financial bubble wether it be the Cold War weapons bubble of the eighties under Reagan or the tech bubble of the 90''s under Clinton or the Sub-prime housing bubble of Bush Jr. the Federal Reserve was to mop up all this excess paper money by raising interest rates so that ordinary investors would logically go back into CDs and Treasury Bonds. And not until there was another bubble ready to go would the Federal Reserve low interest rates. Well this time they didn''t do that because then the Republicans would take the blame for high interest rates like Jimmy Carter wisely did back in the late 70''s

So what does this mean? Well now all of this excess paper money created by this last bubble is being passed on to us through pension fund portfolios and through hyper-inflation.

And because there still does not exist a working quant fund model to start off a new bubble well folks we''re going to pay for it through hyper inflation even if it means oil has to go to $300.00 a barrel or higher.

This is why this crisis will be worse then the GREAT DEPRESSION it''s the literal melt-down and end to our economy.

[ringading3]

McDonald serves a better cup of coffee and charges a lot less! Starbucks is for suckers!

[whitemale08]

curse914-

Hey thanks for sticking up for me. You understand exactly what I''m saying.

Look I know it sounds wierd but the people who designed this financial system on Jeckle Island are wierd.

They are selfish more then anything because what they wanted to absolutely do more then anything was avoid taking risks; better leave that problem to regular working folks.

And that''s why everything I told you seems like Horror Movie but ask yourself:

Do you logically think that these people were designing a financial system to work in your best interest?

Ask yourself that question. And what''s even more weird is that they tell you how they did it. It''s all right there in books you can buy at Barnes & Nobles

[ringading3]

MommaKat64 will become very poor because of a lack of financial knowledge.

[excoachken]

What a surprise! In this troubled economy, people have decided to buy coffee at 1/5 the price that this "rip off" has been charging. Except for the truly "elite" and those addicted to hyper caffinated java, nobody will miss this outfit!

[whitemale08]

ringAding3-

You''re so right and that''s because our education system public or private are mandated to teach us this Keynesian financial garbage from an early age.

Some Europeans especially those who receive a Rhodes Scholarship learn both Keynesian

but also the most important economic theories that come out of Austria where the debate took place against Keynes about monetizing debt instead of anchoring your currency on gold and silver.

[whitemale08]

curse914- I''m so glad you brought that up.

Wasn''t hillarious how Republican Treasury Secratary Henry Paulson (who came from Goldman Smacks) tried to come up with this Super SIV garbage to hide all of that sub-mortgage back securities that they suckered the Federal Reserve into monitizing in exchange for them?

What a joke?

[apprxam]

Blockbuster;Kmart: Starbucks will close 600 stores while at the same time, re-think expansion. Really? Expansion? You''d think they''d halt any expansion until the economic climate changed.

One thing they could do is stop opening kiosk type shoppes in supermarkets. I''ve yet to see anyone use them as of yet, so much so that you don''t even see anyone wearing the uniform or behind their respective counter. The only evidence of their presence is the het one of them may be wearing while bagging you groceries or collecting shopping carts.

The model is broken because it requires constant growth at a 8%-9% rate. Like newspapers, they''ll have to completely rethink this model.

[whitemale08]

ApprxAm - Good post! you''re another one who gets it.

It''s hillarious how our phoney economy works based off the expansion of debt.

People think the economy grows because the Fed will come out with some phoney numbers like 4% growth for the year.

I got news for you folks that growth is not in production like manufacturing for our own domestic consumption, it''s the growth of debt in credit cards and mortgage loans and home equity lines of credit.

This is how you can hide a recession by hilariously claiming that the widening gap between stagnant wages and what it really cost to live can be covered by debt.

So therefore credit or debt is a supplement to your income.

Which means you are no longer wealthy but Affluent.

Affluent means you''re maintaining a lifestyle you don''t truly own by taking out debt or financing it.

[apprxam]

Curse, I agree, to a point about the Alternate Energy economy,except for one thing. Exxon; BP; Chervon and the myriad of power companies throughout the nation. They want first dibs at it and on their own terms & timeline.

I dig what WhtMle was saying; there is little interest of the working by the very-have-much crowd. In fact, there appears to be a concerted effort to cleanse the net-worth of all Americans, in what I believe to be attempt to even the international scale and only devaluing American''s worth can this be accomplished.

A new economy based on Alt Energy might be just as you say, but I fear either the free marketing of some of those jobs at the hands of Energy companies because they would become comodified, just like under Enron and company. Another problem is the fact the American business is late to the game and being the case, it''s already globalized upon our ernest entry and the built in advantage of monopoly might be good for the American consumer but I fear tarriffs will be used to nulify that aspect of efficiency. Cell phone and "American" cars available to Europeans can''t be sold here in the good ole USA because of political and business interest. Let''s pray for a small scale revolution that can be replecated easily.

[whitemale08]

curse914- another good one!

There''s so many classic lines from Paulson they crack me up laughing so hard!!! lol

I love watching him give speeches for entertainment purposes.

He''s like Cheny & Rumsfield with lines like "deadenders" and "turning the corner" etc. lol

[apprxam]

The Bank of America purchased CountryWide today and you''d have to ask why?

I think to mask the failure of it''s own banking habits. "But that company is being sued by States AG all over the nation", you say to yourself. With this US Supreme Business Court, nothing to fear. When Bernake used the term of universal "salubrity" to justify allowing the fed to back the losing shares of Bear Sterns, cover was given and signals sent, that all smells good in (Y)enmark. As shown in the Exxon decision last week, fault isn''t the issue anymore; it was blanket immunity and I et you it''ll be used in at least the concurring opinion in the near future and deemed as justice, even though it won''t be fair. Culpability doesn''t apply, only corporate rights exist. The fourth amendment is meant to protect private business, not civic privacy.

[whitemale08]

curse914- Here''s some more classic lines from Republican Treasury Secratary Henry Paulson:

"The fundamentals of our economy are sound" translation: Americans haven''t caught on yet to this PONZI scheme we got goin'' here.

"The American is resilient even in the face of these economic challenges" translation: Americans are still stupid enough to borrow more money on their credit cards to keep up with inflation.

And you''re right the boooming years of the 90''s tech bubble under Clinton was phoney too.

[brianp55]

Exceptionally mediocre coffee anyway. The stuff from McDonalds is far better...and I can get a McSkillet Burrito at the same time. They could close every Starbucks on the planet and it would be a complete irrelevance to me.

[apprxam]

The French have been buying up water ways all around the world in an attempt to sell people their own water. These guys know the writing on the wall and it is energy, water, food; in short, resources and whomever controls resources has the power.

Curse

Right-o...the World Bank required resource privitization before they would give life saving, but usary rated loans to poor African and South American nations ran by corrupt regimes who could''nt care less.

Good signs ahead though, Peru is in revolt from these policies and the government has rethought it and may default, as they should. Once this occurs, more and more countries will follow suit. They already ahve bad credit and no use allowing the first world nation to gain it financiallly. Come get to the old fashion way: BY SPEAR!!

[whitemale08]

curse914- Well unfortunately Democrat Dodd wrote a bill that will let Bank of America buy Country Wide so that it can dump all of that mortgage back security garbage onto them like your colon uses your "you know what" and then the bill declares all of these mortgage back securitis solvent so Country Wide can start all over again.

[apprxam]

The American Fire Sale began when France and Germany was near finished paying for their Marshall Plan loans. So Nixon began the open door policy with China and other to keep the money flowing and carried on by every president since. Ford, Carter, Reagan, Bush Elder, Clinton and Cheney. This has been in the making for a long time.

[whitemale08]

curse914- If we really want to win this revolution or fight we have to demand that government will own all of the patents for alternative energy. It''s too precious to be left in the con artists who come with different way every day to enslave us through usury.

[whitemale08]

curse914- me too good nite.

[apprxam]

Hopefully it will not push people into the perverted form of socialism (Communism). It would be people trading one Aristocrat for another. The middle ground always seems to be the answer.


--------------------------------------------------------------------------------

Posted by curse914

Ahh, the aristotelian middle. Avoiding extreme is very difficult to proclaim, let alone achieve. Unfortunately, the swing may be in that direction becasue, like you said, that leader will become too involed in power and realize that to repress will be easier than than to live up to unreal expectations proferred any one seeking to lead it.

[apprxam]

night, all.

[apprxam]

Yes, yes he is, as was Castro and China and USSR

[sistatee-2009]

Starbucks will offset the lost revenue by selling nose candy in its remaining stores.

[ausus-2009]

To get back to the subject of Starbucks, it has also been a force for good. Many countries had lousy coffee before the competition of Starbucks forced them to improve their local retail product.

In my travels, the greatest number of Starbucks per square mile I saw was in London. It obviously filled a need.

It was also a source of franchise revenue for a Seattle company.

[newview08]

What a shame, where will all the college graduates with degrees in Political Science and Social Studies work?

[newview08]

And wanna-be poets who like Mitchell a bit too much.

[ausus-2009]

Humanavance,

What does your rambling have to do with the quality of coffee?

[newview08]

Cute, sort of a swan song for the educated latte-maker.

[ausus-2009]

Starbucks raised the bar. It weaned a lot of people off instant coffee or coffee that had been left on the stove all day. The world has moved on since to better quality and value, still we should be grateful for that first step.

[ausus-2009]

Humanavance,

Do you actually drink coffee or are you on something more stimulating?

[newview08]

I knew that guy at the renaissance festival with the turkey leg and the feathered hat was on dope.

[ausus-2009]

Humanavance,

Have you tried a blend of 3/4 medium roasted Columbian and 1/4 dark roasted Jamaican? It''s my favorite.

[oneworldusa]

I won''t miss Starbucks. I hate their coffee and uptight personnel and made-up-size-names.

[naucoming4u]

But since Bush permanently exported 400,000 high technology jobs from the Silicon Valley to other nations, and kept it secret for almost eight years, I have to take what I can get.
ST

Posted by Humanavance at 03:29 AM : Jul 02, 2008
............

I feel your pain ST! I am lucky to have just been hired by HP a few months ago here in the valley, but with the direction of the economy, (and this country), I am quite sure it will be short lived.

In the mean time, I will suffice with Folgers in my Mr. Coffee machine!

[runningralph]

Capitalism is about taking chances. In that respect, Starbucks is a champion. Unfortunately, there is no reward for taking chances on an idiotic business premise. The premise here being that people would pay exorbitant prices for something they don''t need.