Posted on 07/29/2008 7:08:57 AM PDT by null and void
Iconic US coffee chain Starbucks said Tuesday it would shut most of its Australian stores within a week, having already taken the axe to hundreds of US outlets as an economic downturn bites.
The company said it would shut 61 "underperforming" stores from a total 84 in Australia because it was refocusing to concentrate on the major cities of Sydney, Melbourne and Brisbane and surrounding areas.
"This decision will result in the closure of 61 underperforming locations throughout the country by August 3," it said without detailing how many jobs would be lost, although media reports put the figure at 685.
Starbucks said earlier in July that it would shut 600 US stores in a move widely taken to reflect the slowdown in the world's biggest economy, where high fuel prices and a credit crunch are forcing consumers to tighten their belts.
The giant coffee chain's chairman Howard Schultz said the firm had developed a transformation plan in January that had led to the "difficult but necessary" decision to close stores in Australia.
Schultz said in a statement the decision to shut the stores reflected problems specific to the country and did not reflect "the strong state of Starbucks business in countries outside of the United States."
"There are no other international markets that need to be addressed in this manner," he said. His statement reportedly followed a key telephone discussion between Starbucks executives in Australia and the United States.
Starbucks opened its first Australian store in 2000 but faced competition in some of the country's more cosmopolitan cities from an existing cafe culture.
"We would like to thank all of our customers for your continued patronage and support during the past eight years," the company said.
Starbucks added it would "reach out" to customers hit by the store closures by directing them to its Australian website and a customer care hotline.
The firm is scheduled to announce earnings figures later this week, according to its international website. A list of the Australian stores to be shut is due to be available from the close of business Thursday.
In April, the coffee chain revealed net earnings slipped 28 percent to 108.7 million US dollars in the three months to March.
Starbucks opened its first store in the northwest US city of Seattle in 1971, taking its name from a character in Herman Melville's famous whaling novel "Moby Dick."
The firm had more than 16,000 stores by last April, offering items like frothy lattes, European-style macchiatos and syrupy Frappuccinos at prices some describe as expensive.
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The Vegemite sandwiches just didn’t work out.
Condensed Guiness...
I thought Australians preferred those really big cans of strong beer...
Oh, this just breaks my heart.
OK. Let’s go to Yum-Yum Donuts!
Duh.
Even bad unexpected events can have good consequences. The reminder that there is a clear distinction between life necessities and discretionary spending. Starbucks is only among the first. "Last in first out" is become apparent. The same can be expected of a whole panoply of "industries" which grew smug; fat dumb happy and delusionally greedy. Sports, movies and "entertainment" of all sorts.
Perhaps, I'm wrong, the end of the process remains to be seen.
The Service Industry Society, started 50 years ago, has a definite achiles heel.
Starbucks mars Mars?
I've been to Starbucks plenty of times, but I've never seen a $4 cup of coffee. Across the street from my office, in downtown DC, a large cup of coffee at Starbucks is $1.95.
Perk here. Perk now!
Then I guess the Aussies are smarter than your average American and don't fall for the fad of $3 per cup coffee that tastes like swill.
The venti lattes with syrup are over $4. If you get a starbucks card and register it, then they are less than $4.
After this poster came out shortly after 911 I dont care if the whole company collapses.
Yuck! My wife loves the green chai frozen drink. All too cloyingly sweet for me. I prefer their regular coffee drinks.
Tastes like BURNED swill!
Soooooo, how do you feel about the “Crescent of Embrace” FLT 93 memorial?
Don’t Tazo me, Bro!
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