Starbucks Closing Up Shops Down Under

(AP)  Starbucks will close more than two-thirds of its 84 stores in Australia by the end of the week under a restructuring plan announced Tuesday that will put almost 700 people out of work.

The surprise announcement came a few weeks after the global coffee shop franchise that has become ubiquitous around the world announced it was closing 600 company-owned stores in the United Sates to bolster its business.

Starbucks Coffee International, a wholly owned subsidiary of Seattle, Washington-based Starbucks Coffee Co., said it was closing the Australia stores to concentrate its business in the country's three largest cities.

There are 84 stores operating in six of Australia's eight states and territories, but 61 will close by Aug. 3, Starbucks said on its Web site. Twenty-three stores will remain open in Sydney, Melbourne and Brisbane.

The company said 685 jobs would be lost because of the closures, Australian media reported.

Starbucks will post a list of stores that will close on its Web site as soon as it notifies all the employees that will be affected.

"We would like to thank all of our customers for your continued patronage and support during the past eight years," Starbucks said.

Starbucks Co. is due to report its third-quarter earnings in the United States this week. The company has spent recent months attempting to reinvigorate its U.S. business by introducing new products and scaling back its plans for growth.

While the company's plans to close stores in the United Sates led to criticism that the company had grown too quickly, the scene internationally has looked better. The company says it plans to open 975 new international locations this year.

[keithle1]

At least in the USA, they went nuts building stores.
The coffee fad had to die down sometime. Couldn''t have stayed that way forever. It''s not just Starbucks, it''s Cosi, Caribou, etc. Talk about saturating the market.

Not sure why Starbucks feels the need to sell music CD''s. People aren''t going there for that.

You can get tea at a Starbucks in USA. Cheaper than the coffee.

They''re a place to hang out. Maybe meet someone. Different environment than a bar. More female-friendly. Bring your laptop.

Who would have thought you could have made so much money selling coffee?

"You''re gonna start a coffee company where you sell cups for over $3? No way! Are you nuts? Where did you get your business degree? Ha ha ha ha! People will never pay that. You''re crazy."

[gaye5]

DaysRnumbrd, that is funny. I am a NZer living in Australia, and the taste of Star Bucks coffee is just awful, so who is going to pay $3.50 (Australian) for a cup of horrible coffee and their food is also very dear. I dont know what $3.50 would be in America..
I personally would rather wait until I got home where I can make a nice cup of tea and for the price of their one biscult I can buy a packet of chocolate biscults...

[ciscoxing]

I live in Vancouver,B.C. and there is a STARBUCKS every 500 yards, personally I prefer TIM HORTON`S coffee , STARBUCKS tastes like jet fuel..........

[avigil2]

I, too, grew up in the Northwest (Portland/Seattle) but I have found that the best coffee are the smaller chains (Seattle''s Best Coffee) and the mom and pops (Hotwire Coffee in West Seattle; Vivace in downtown). No Starbucks for me. Too expensive and mediocre tasting coffee.

[daysrnumbrd]

Perhaps Starbucks was not popular in Australia becase:

1. The Aborigines constantly disturbed the customers by the annoying sounds of their digareedoo.

2. Customers couldn''t put their cup down without it being knocked off the table by a flying boomerang.

3. In some locations, large crocodiles were blocking the entrance!

4. Traversing the Outback for days, just for a cup of average iced-coffee was an absolute pisser.

And the final reason why Starbucks was not popular in Australia...

...they set up their drive-thru windows for left-hand drive cars like in America, (opposite of Australian cars). Oops.

:-)

[buttonjockey]

: We cannot continue to think that "producing" countries like those
: in Asia and nations with resources like those in Africa and
: South America are going to continue to trade their manufacturing
: and commodities so us white folks can sit back and luxuriate and drink coffee.

They''ll keep doing it for as long as they think they''re getting a good deal. After that, it''s back to the farm . Your point is good except the real question should be about how long a developed country whose economy is based on growth and service can last. Without good industry, all you have is growth and service rides on one of those two.

Starbucks is opening 975 more? Where? I know that in London you''ll find 2 or 3 on almost every block. How can they think they''re going to succeed when they compete against themselves?

[xmanborg]

I grew up in the North West, & was going to Starbucks back in the mid 1980s in Seattle. I have tried all the coffee drinks but my favorite is still just a Large Plain House Coffee, black with no sugar or cream. Seattle Best Coffee, Starbucks, B&O Coffee in Seattle are all great coffee places.

Starbucks makes a great cup of coffee & so does a lot of other coffee shops across the country. People who drink their coffee black love the REAL taste of coffee. A tall House Coffee is about $2.10 and thoes $5 coffee drinks I think are just a waste, unless its Christmas Time, Gingerbread or Eggnog Latte are very delicious.

[nothappyatall]

The era of the $5 cup of overpriced coffee bites the big one!

[whitemale08]

The so-called "developed" countries are going to come out of their "post-industrial" "service-based" economic slumber and get back to work.

We cannot continue to think that "producing" countries like those in Asia and nations with resources like those in Africa and South America are going to continue to trade their manufacturing and commodities so us white folks can sit back and luxuriate and drink coffee.

How long will these "other" countries continue to accepts wortheless paper money for hard resources and manufacturing?