Falling Star… Bucks: Crisis in Suburbia

starbucksToday, Starbucks announced that its quarterly profit has dropped 28 percent. With the announcement of the drop in profits, Starbucks plan is to cut U.S. store openings and focus on the growing international market.

Do they think this is really the answer? Perhaps the best thing would be to share real estate with Wallgreens. Instead of building on opposite corners they could try the Yum! Brands model and coexist with each other. Caffeine and pills: the remedy for all the rich and famous.

Maybe they could try upgrading their pricing structure to include a free bakery item with the purchase of ten coffee items. For example, for every $40 you spend on coffee you could get a free scone.

Maybe another option is to offer free wifi to all the laptop carrying executives and college students. This would have to be better than the subscription model that is currently available.

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I’m sure there would be some who would suggest to actually sell good coffee. The kind of coffee that doesn’t taste burnt or leave holes in your stomach.

That being said, does anybody really care that Starbucks profits fell 28 percent? Does the average American really care that they’re going to cut the opening of new stores? Probably not!

However, when I decide to stop in at Starbucks, they better not cut corners on my caramel macchiato or mocha frappuccino. I also hope they keep offering those $20 coffee cups that my mother-in-law gives me every year for Christmas.

  • Coffee Bean & Tea Leaf used to offer a card where you buy 8 drinks and you get the 9th one free-that got me going there for a while-then they stopped offering that. I stopped going. I think customers appreciate value and consistency. Great tasting coffee is subjective-I happen to like strong tasting coffee (Starbucks). I also think the individual stores that focus on customer service (remembering my name) have got the right idea-When I see a genuine smile and when I hear a, “Hi Daniela, how are you today.”-I am sold!

  • David:

    Well the sky does not actually appear to be falling, but Starbucks’ profits sure are. I hope that Schultz manages to re-inject some of the hot coffee loving that made the company so powerful in the past, as they seem to have become more of the McDonald’s of coffee than “3rd place” that they so frequently touted as one of the secrets to their initial success. So it goes with growth and sophomore efforts be they music albums, films, or coffee franchises, it would seem…

  • Hmmm is it really a surprise that people have finally stopped allowing themselves to be overcharged for bad bad coffee and have deserted starbucks. Surely everyone wasn’t fooled by the open another store and somehow look like sustainable growth. Starbucks needs to drastically rethink if it isn’t just to become another passing (and now dead) fad.

  • nok

    heh – well you reap what you sew – if only all the Starjunks patrons would go to a local coffee shop – i’d be grinning even more…