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Starbucks Overview

In: Business and Management

Submitted By sydfem07
Words 455
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Starbucks Closes Store Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington,
USA. Starbucks is the largest coffeehouse company in the world, with 15,012 stores in 44 countries.
According to “Starbucks Corporation recorded revenues of $2.6 billion in the third fiscal quarter of 2008, ending June 29th.” The coffee giant recorded a loss of $6.7 million, or about a penny a share, due to charges related to store closings. The higher the concentration of expensive, nautically themed, Italian-branded Frappuccino joints in a country's financial capital, the more likely the country is to have suffered catastrophic financial losses. Starbucks strategically located many of its outlets on the ground floors of big investment banks. Starbucks operated on a "build it and they will come" philosophy. If the waiting time at one Starbucks was over a certain number of minutes, Starbucks reasoned that an opposite corner could sustain a new outlet. A slowing economy and rising dairy prices had contributed to Starbucks'
Starbucks is opening a minimum of six stores a day somewhere around the world. The company has mastered the build-out process of opening new stores fast and inexpensively. According to Brand autopsy “One of the reasons Starbucks has excelled from a profitability perspective is because they build-out stores using a “Kit of Parts.” Store expansion process by designing a palette of plug ‘n play pieces which can fit any store size. According to “Starbucks will close 600 company-operated stores in the next year, up dramatically from its previous plan for 100 closures, a sign the coffee shop operator continues to struggle with the faltering US economy and its own rapid expansion.” Starbucks is closing 19 percent of all US company- operated stores...

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