Money Beat

All of this comes at no surprise. Starbucks got to crazy with their American expansion, to where they had stores competiting against their own stores around the corner.

With people paying more for food, energy and to get around, the little daily $4 drinks would become a luxury to most. Their regular coffee is down right nasty and taste burnt, so they can't keep the volume drinkers in the door-McDonald's beat Starbucks to that punch. They will have to keep up with their high-end customers and become something special again.

Maybe if their coffee wasnt such a ripoff more people would continue going to Starbucks.

Wonder why America is so messed up, maybe because people were wasting money on pricey coffee and juice drinks, buying s-h-i-t they do not need or could afford............time to pay the piper.

Starbucks has always been better at PR than at making coffee. Starbucks has primarily been successful at selling dessert (coffee loaded with sugar and fat) rather than coffee.

They still do not seem to know if they want to a be a specialty coffee shop, fast food or another Panera.

With all the fanfare over coffee and staff training, the lines are just as long. the new smoothies take a long time to make and adding sandwiches to cook will slow things down even more.

SBUX needs to decide what they are, where they want to compete. The coffee quality is still mediocre when compared to MCD and DD, yet it costs a lot more.

I do not think they have done all the restructuring they will need to do. their stores to be open still will need mmajor enhancement to adapt to the new menus. MCD is just ramping up!

Personally I like Starbucks and drank it nearly every days...sometimes twice a day. But thanks to Bush and the GOP who the heck can afford coffee let alone anything else! Thanks for the miserable life GW!

I hate thier coffee. It's alwys bitter burnt tasting. And thier fancy drinks are too much of a luxury in todays economy.

hehehehehehe...:-)

The business model is too generous to employees and the founder's dream of building a new more responsible company can not be support by our current economics. Is the American dream lost forever?

Wow, someone already blamed this on George Bush and somebody else questioned whether the American Dream is lost forever now that Starbucks is cutting back.
You people need to get out more

I love Starbucks. Even in a crappy economy, I can have my Starbucks and still feel like I'm treating myself. It's one of the few luxuries that costs about $3; that's why it will survive.

testing

Democrats took full control of Congress in '06, now high food and gas prices and the death of Starbucks. Thanks Reid and Pelosi! Just need Obama now to complete the triangle of crap.

Yet they are still building new stores, where I live we have a brand new one being built, wonder how long the doors will stay open or if they will open at all.

We are glad to see them go from our shores. Keep your fancy jetset coffee. I mean geeze it's just coffee. Actually I hear there is less fat in a big mac. What's going on?

Since the owner of Starbucks Howard Schultz sold the Seattle Super Sonics to some redneck from OK City, Starbucks is already dead to me. I hope the whole company crumbles. No, I'm not bitter at all, but their coffee sure is.

Martin you are seriously confused. The Democrats did not take full control of anything. They only have a slim majority, and not enough of one to get things passed because of the republicans who keep blocking everything they can, and a republican president who threatens to veto everything. So don't blame anything on the democrats...we haven't given them the power they need to do anything.

The Starbuck's owner & CEO Howard Schultz needs to seriously consider treating his employees better. His actions, or inactions resemble the conduct of senior executives of the airline industry; if 150 million in profits were realized this time last year, what the hell did old Howy baby do with all of that money? As an international author on the deceptions of corporate officials of the airline industry I know a thing or two about officials of companies that have ethical "black-holes" in their character.

Regards, Anthony Allbright

Starbucks once sold "atmosphere". Scattered newspapers, leather armchairs, nice mood lighting, cool music. Now it is crap coffee, cluttered trinkets for sale, crap music, ...did I mention crap coffee?
Time to go back to the roots. And get rid of the "tip jar". Period.

They do not carry most of the good flavors I enjoy - and their prices are outrageous compared to the others ... they may be the brand name best known but they are not the best at their game

Christian:

You're right about that tip jar. Tipping at a counter or a drive thru? Crazy. I guess some people are so intimidated or ignorant of social etiquette that they will tip.

Howard is NOT focusing on coffee. We are serving Ice Cream here in southern california and nationwide just rolled out Jamba Juice drinks.

horrible, scary company to work for.

7/11, er Starbucks, is a sinking ship.

Oh and tips save lives. obviously you've never worked food service. And starbucks coffee is actually less than many places, i'm looking at you Coffee Bean

I personally love Starbucks. I go almost everyday. I get great customer service, they know what I like and know my name. i like the fact that they do things for the community (the one near my house adopted 2 families over the holiday season the past year) and when one of the managers of one near I work had complications after surgery, they set up a fund to help her out, how many places would do that? I like the fact the Starbucks helps it's employees with things like health insurance for part time employees, again, how many employers do that? I feel for the people who are going to be losing their jobs.

Take what you spend daily at Starbucks and calculate what you are spending a year. You will either reduce trips to Starbucks or quit them altogether. It's like standing on the corner and throwing your money up into the air is what I discovered. When I realized how much money I was spending there, I was shocked. I no longer do Starbucks as there are less expensive alternatives which are just as good and easier on my wallet in this economy.

Starbucks based their business model when things were great. Now they are just adjusting their business model according to the current economic situation. Their prices were high but people can affort it, now money is tight their prices will come down.

Starbucks drove me out the door when the sandwiches started in the morning. The stink from the ovens is utterly offensive and actually clings to your clothes. Plus, it was just disgusting to watch people bring their children in at 7 AM and feed them one of these crappy sandwiches and call that "breakfast". Talk about teaching your kids bad nutritional habits! Plus, my local Starbucks get's invaded every Sunday morning by a bible study group that takes up all the chairs and no one says a word to them. Don't they have churches for that?

I have never card for Starbucks coffee, it tastes burned. It is increasingly the Starbucks PR machine has run out of steams and in turn their stores. Their concept of blanketing the market with stores has been done before (Radio Shack) and it did not work for them.

Starbucks was little more than a fashion trend, and in a short time will be little more than a memory.

*reads over the comments as she sips on her Caribou Coffee*

Mmmm nothing like cold press in the morning. Speaking of cold press, I had one at Starbucks and it tasted like tomato. o.O Granted that was in Philadelphia, a place where the water tastes like swamp, so perhaps that's normal.

Either way, some of you were gushing on about the tip jar. I'm not tipping someone who takes a cup, pushes a button and hands me a cup with coffee in it--especially considering you mix the concoction with cream/sugar if you don't take it black. If that requires tipping, then I should get tips for every time I answer a question at a customer site.

"That will be one dollar."
"For what?"
"I was doing my job and answered your question. Was it satisfactory?"
"Yes... it was."
"Then tip me, please."
"But, why should I, you were doing your job?"

For those commenting about the tip jar:

Baristas' crappy wages are compensated by tips. What does a waitress do but bring food back and forth to your table and ask if everything is ok. They didn't cook the food. At least baristas make the drinks.

Furthermore, some of us baristas DO take pride in espresso beverages. Some are idiots but at least give some credit and tip them for performing the service. When you make less than $12,000 a year and can barely afford your bills, the tips are a blessing and highly appreciated.

As I browse over the comments that have been posted, it makes me laugh. One blames Bush, others blame this on someone/something else. If you have that much a problem, don't go. Think its too much of a luxury in todays world? When I read that statement, it makes me think of owning a different BWM for every day of the week. Now THAT'S a luxury.

Tips? I know people who live on tips. Think of it this way. Tips are split up evenly between the employees every few weeks. Tips are basically a "thank you for your time and the *enter drink name.* It is basically their bonus for their work. Many companies give a yearly bonus based on performance and profits.

What you people are basically saying is, is don't give them their tips. Well fine.. How about we dont give you people your yearly bonuses? You are doing your job, why should you get extra for something you have to do regardless?

I like Starbucks,so what? Nobody is forced to go there,and $3-$5 is cheap compared to other "habits". And let's remember the definition of the word TIP: to insure promptness. Completely optional,but usually quicker service if you tip.

With the state of the economy I am not surprised that their company has taken a hit. More people are having to be frugal and that means having to give up their latte and brewing their own coffee, or finding a cheaper alternative (McDonald's). They need to lower their prices. Who in their right mind will pay $20 for a travel mug. That is just ludicrious. $10 is more than enough. You can get a really nice travel mug with stainless steel inside instead of plastic at Fred Meyer's for $6.99.

As a senior citizen, one of the reasons I don't go to Starbucks is the fact I don't know what most of the beverages really are with their super fancy names. I can get just plain regular coffee almost anywhere else and cheaper, so I do.

Starbucks just expanded too fast. Too many stores. Their fundamental model still works, though. Americans drink coffee and coffee byproducts. That wont change anytime soon. I would buy Starbucks stock.

The Starbuck's owner & CEO Howard Schultz needs to seriously consider treating his employees better. His actions, or inactions resemble the conduct of senior executives of the airline industry; if 150 million in profits were realized this time last year, what the hell did old Howy baby do with all of that money? As an international author on the deceptions of corporate officials of the airline industry I know a thing or two about officials of companies that have ethical "black-holes" in their character.

Regards, Anthony Allbright

Geezin' here, but good grief! The (not-for-profit) company I hope to retire from relatively soon provides coffee-makers, free, decent coffee & accouterments for each office area. Yet the kids, who don't see any future/grumble interminably about how they won't have Social Security (as if we were counting on it??)--these same kids spend about $10+ a Day! at Starbucks. As I said, we're a non-profit -- high prestige, low pay. We've Got decent coffee. And a fridge to keep any additives. Or even one's own special brew. I've been wondering for years how that works. Now all these 25-ish kids are muttering viciously about not being able to buy a home next year. D'oh.

I doubt the reason any 25 year old can't afford a house is Starbucks' fault.

I can make my own coffee! I dont care for their special drinks. If you do then continue to do business! I believe these trendy things will decline when people don't have as much money or time to waste on them!