Wednesday, July 02, 2008

The Coffee Crunch

It is possibly a sign of the times that that monolith that seemed to want to not only have a branch on every street corner but ever corner of every street corner Starbucks is feeling the pinch. Having doubled in size since 2004 they are cutting, sorry 'reverse overgrowthing' 75 of their workforce and cutting 600 stores in the US.

500 of these stores already exist and 100 were part of a planned expansion. The number of Starbuck employees that are looking at losing their jobs is 12,000 full and part timers. Starbucks are pointing out that they are still growing although instead of 250 new stores next year now they are looking at only 200.

Many of the stores are believed to be drive-thrus as with rising oil prices make people think twice before the double luxury of driving up to a window for a premier brand coffee.

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