Bottom Of The Barrel

Maybe not such a good idea

My New Venture Management and Entrepreneurship professor loved to talk about the hyper growth of Starbucks and he would refer to the company often as an example of a company that was going against common business wisdom and succeeding. His greatest example was their continued store growth in urban settings, regardless of existing stores. Well perhaps the flawed plan has finally caught up to them.

Starbucks Corp. will close 600 US coffee shops and eliminate up to 12,000 jobs, the most in its history, as chief executive Howard Schultz slows the chain's expansion after it doubled in size in four years. Seventy percent of the stores to be shut are less than three years old, the company said. So much for all those new stores and hopefully those 12,000 barista's will find new work at other locations.

Labels: Business

posted by TheWino @ 3:49 PM