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Starbucks closing 600 more stores

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MikeG

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Re: Starbucks closing 600 more stores

by MikeG » Tue Jul 01, 2008 10:01 pm

If you read the article it said a good portion of those employees would be absorbed into their other locations.

It's one thing to be a chain, it's another to oversaturate like this place has.
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Mark R.

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Re: Starbucks closing 600 more stores

by Mark R. » Tue Jul 01, 2008 11:16 pm

I wonder if the ones inside other stores are considered a Starbucks store? If so I'm sure the one inside Target in Springhurst will close since there is never anybody in it.
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Shawn Vest

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Re: Starbucks closing 600 more stores

by Shawn Vest » Tue Jul 01, 2008 11:24 pm

Mark Head wrote:First off I'm a small business owner...so I get the managment issue as well as anyone on this board. But "glee" over any corporation closing this number of stores is seriously misplaced IMO. So that fact that Ford, GE, Bank of America, take your pick are laying off thousands should approach orgasmic.....right?


as the article said, most of these employees are being absorbed into other locations
but Ford could have moved to make more fuel efficient cars 25 years ago and we'd all be in a better position right now

i don't take pleasure in the individual losses caused by these companies closing their doors

but the corporate practices that reward the chief officers for failing finances and failing business strategies should be addressed

there are just causes for not supporting corporations
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Brand M

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Re: Starbucks closing 600 more stores

by Brand M » Wed Jul 02, 2008 5:51 am

The only corporation I would truly celebrate closing stores would be Wal Mart. They are the epitome of "evil" corporation. The job loss would hurt some lower income families but eventually the small business would make a small come back in that niche.Wal Mart treats it's employee's like slaves , and doesn't treat women as equals .If they even sniff whispers of a union in their store. Lights out.

I don't know enough about Star Buck's employee policies to pass judgement. They did get out of hand in their expansion of stores, though.Let's face it, we are fast approaching a mercenary corporate economy in alot of states and areas of the US.
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Re: Starbucks closing 600 more stores

by carla griffin » Wed Jul 02, 2008 6:48 am

Wasn't it the movie "Rollerball" that showed a world not delineated by national lines but rather by corporations?
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David Lange

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Re: Starbucks closing 600 more stores

by David Lange » Wed Jul 02, 2008 8:30 am

First of all I don't believe anyone is celebrating the loss of any jobs in the Starbuck system. I'm afraid Starbucks is suffering from the New England Patriots, New York Yankees, and Los Angeles Lakers syndrome. In other words, you become successful and become the namesake of the venue, then everyone comes to hate you for the success.

I've been in the coffee business for 16 years, and there is one thing we can be thankful to Starbucks for; the education of the masses regarding coffee. Stop and think about it, how many coffeehouse were in Louisville 15 years ago. Heine Brothers was just a coffee cart in a Kroger's. Sunergos, Jackson's, Java Brewing and Derby City were hidden thoughts in the gray matter of future entrepeneurs. The only coffee houses at that time were run by John Conti Coffee and you can see what happened to all of those. Up until Starbucks, people were being forced to drink weak, unimaginative concoctions that bore the enticing names as Folger's and Maxwell House. No one thought about espresso based drinks or fair trade or organic coffees. Because of Starbucks, people began to realize how good coffee can really be.

Running a coffeehouse sounds like a creative, romantic venture and it can be. But it is still a business, and if not run correctly, you can become very complacent and start producing a very mundane product. Recently in an article I wrote for "Food & Dining" magazine, I visited numerous area coffeehouse and evaluated their espresso. Unfortunately, even at Starbucks, it was amazing how much inferior product is being passed off as quality.

I get undated with individuals who are looking to open coffeehouses in the surrounding area, especially rural areas and are looking for guidance and advice to the success of their venture. Unfortunately it is alarming how very little research the individuals have done on their business plan and how very little knowlege they have accumulated on coffee. It is just like any other business, and if you don't have a passion for coffee, your success will be very limited.

I'm excited about the coffee culture that is developing in Louisville, but we have to tip our hat a little to Starbucks for at least pointing us in the right direction.
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Roger A. Baylor

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Re: Starbucks closing 600 more stores

by Roger A. Baylor » Wed Jul 02, 2008 8:56 am

It's worth remembering that before chain-think, there were small businesses providing the same services, just not under one bloated roof, i.e., Wal-Mart.

There is no reason to believe that ten small businesses growing sensibly over time couldn't handle the same business as the chain, with more of the money staying in the community. Why do we celebrate chain-think, which in essence means giving things away for long enough to put small businesses down, then congratulating them for creating jobs that already were there -- and giving them tax abatements to boot?

David fairly credits Starbucks with helping to educate the masses, but in know from personal experience that it could have been done without Starbucks. BTW, speaking personally, I only spend money at a Starbucks if no other options are available, as in the case of restricted airport competition. But, echoing David's point, I don't detest Starbucks. That's reserved for the Wal-Mart business model of actively seeking the elimination of local competition.
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Dan L.

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Re: Starbucks closing 600 more stores

by Dan L. » Wed Jul 02, 2008 9:59 am

Roger A. Baylor wrote:BTW, speaking personally, I only spend money at a Starbucks if no other options are available, as in the case of restricted airport competition. But, echoing David's point, I don't detest Starbucks. That's reserved for the Wal-Mart business model of actively seeking the elimination of local competition.



I also do not detest Starbucks and will typically only spend money there when I am out of town and do not see a better option available. I don't know that I agree that they are not actively seeking the elimination of local competition but maybe I have based my opinion on pure perception. The fact that they opened a Starbucks in the Seelbach directly across the street from Java Brewing Co. in 4th Street Live really left a bad impression on me.
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Re: Starbucks closing 600 more stores

by John Greenup » Wed Jul 02, 2008 10:37 am

Hate to see Starbuck's closing stores (which means people losing jobs), but it doesn't come as a surprise when you consider how aggressively they've grown....having spent over 11 years on the corporate side of the restaurant industry, I always chuckle when I read about some chain touting their plans to open some ridiculous number of new properties in a relatively short period of time....growth is fine, but it should be realistic and managed -- with more of an emphasis on improving the quality of the restaurants that you have NOW....
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Matthew Landan

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Re: Starbucks closing 600 more stores

by Matthew Landan » Wed Jul 02, 2008 11:32 am

It's the way the market works. If you can't grow sustainably then you'll wither.
Ken Kesey said, "Nothing lasts forever."
He also said "Never trust a prankster."
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Todd Pharris

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Re: Starbucks closing 600 more stores

by Todd Pharris » Wed Jul 02, 2008 11:58 am

Despite my earlier defense of Starbucks employees, I have never chosen Starbucks when a local option is nearby. For example, I've never been to the Starbucks in the Highlands. Why bother, with so many local places within walking distance?

However, in the morning, between where I live and where I work, Starbucks is the only option I'm aware of. When fighting rush hour traffic, and wanting to make sure I'm on time for work, I'm not going to go too far out of my way for a cup of coffee.
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David R. Pierce

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Re: Starbucks closing 600 more stores

by David R. Pierce » Wed Jul 02, 2008 12:43 pm

Todd Pharris wrote:Despite my earlier defense of Starbucks employees, I have never chosen Starbucks when a local option is nearby. For example, I've never been to the Starbucks in the Highlands. Why bother, with so many local places within walking distance?

However, in the morning, between where I live and where I work, Starbucks is the only option I'm aware of. When fighting rush hour traffic, and wanting to make sure I'm on time for work, I'm not going to go too far out of my way for a cup of coffee.

I buy Heine Bros. Fair-Trade French Roast and program my coffee maker, filled with Louisville Tap, so I have coffee in my reusable cup before I ride TARC to work. I hope I covered all of the Karma bases...

8)
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Elizabeth S

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Re: Starbucks closing 600 more stores

by Elizabeth S » Wed Jul 02, 2008 1:59 pm

Roger A. Baylor wrote:It's worth remembering that before chain-think, there were small businesses providing the same services, just not under one bloated roof, i.e., Wal-Mart.

There is no reason to believe that ten small businesses growing sensibly over time couldn't handle the same business as the chain, with more of the money staying in the community. Why do we celebrate chain-think, which in essence means giving things away for long enough to put small businesses down, then congratulating them for creating jobs that already were there -- and giving them tax abatements to boot?.




Roger, I agree with you somewhat. Before chain-think, there were small businesses providing the same services. I pretty much despise Walmart but as someone who is doing landscaping work on her house, I found fungible goods at Walmart to be much cheaper. If I were only going to purchase one or two things, Bunton's and St. Matthews Feed and Seed would get my money. As much as we hate to do it, my husband and I have bought certain fungble goods at Walmart because it is significantly cheaper for larger purchases.

Its the same thing for us when you compare a place like Borders and Carmichaels. If we need one book, we will run into Carmichaels and get it because we like to support the local businesses. However, when we are buying several books, the savings can be tremendous. I just can not rationalize spending significantly more for the same product.

However, for something like coffee, you put a chain and a local right next to each other, I am walking into the place with better coffee no matter what.
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Roger A. Baylor

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Re: Starbucks closing 600 more stores

by Roger A. Baylor » Wed Jul 02, 2008 2:12 pm

A nice segue into ...

http://www.walmartmovie.com/

... the high cost of low price.
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Re: Starbucks closing 600 more stores

by Elizabeth S » Wed Jul 02, 2008 2:49 pm

Roger A. Baylor wrote:A nice segue into ...

http://www.walmartmovie.com/

... the high cost of low price.



Yes Roger,

As an attorney who specializes in workers compensation issues, I am very well-versed in some of Walmart's practices which is why I used the Borders - Carmichaels example also. Do Walmart's practices lead to lower prices? That is a different issue for a different forum.

My point was that I am price sensitive on fungible goods. For non-fungible goods, I take what I perceive to be better. Build a better mousetrap and I will buy it no matter what label or brand it has or who cooks it or who ultimately gets rich from it. I love Cafe Lou Lou's calzones. If Pizza hut makes a better one, I will buy it. I love Highland Coffee. If Starbucks makes it better, I will switch.
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