Posted by Brian McCullough
Another Monday morning.
Did you hit up your local Starbucks this morning? Have you heard that it might not be around much longer? Starbucks, suffering in the stock market, recently announced it was closing 600 under-performing locations.
Is your favorite locale on the list? Check here for the full list of closings.
Why is Starbucks having problems? My quick take: it’s like the housing bust. For years and years, banks had all these rules about who could get a mortgage and how much they could get. Then, one day, someone came in and said, “Let’s throw out the rules! We’ll give loans to everyone and make way more money!”
Same thing happened to Starbucks. For years and years they had a deliberate, calculated strategy relating to their expansion plans and which locations they’d consider opening. Then, one day, someone came in and said, “Let’s throw out the rules! We’ll open stores everywhere! Even in people’s garages!”