We had a brief item last week when Starbucks announced it was closing 600 stores and letting 12,000 employees go. One reason? The slowing economy, which has reduced demand for a $5 cup of coffee. But several experts said the chain was also overbuilt –- horribly, woefully overbuilt. Said one analyst: "They probably made some poor real-estate decisions. ..."
Which got me to thinking: How many Starbucks do we have in this part of town? So I checked: There are 18 in our East Dallas and Lakewood magazine delivery area, including six in a cluster along Greenville Avenue from Mockingbird to Northwest Highway.
Guess that is horribly, woefully overbuilt.
Technorati Tags: Starbucks,store closings
There must be something intoxicating about expansion. I have seen so many instances where successful chains got in trouble by expanding too aggressively. They should have known they were in trouble when the Simpsons made fun of the number of stores they had (Bart running down the street, passing Starbucks after Starbucks).
Posted by: Norman Alston | Jul 08, 2008 at 07:49 AM
Yeah I thought this was funny when I moved to Lower Greenville. Their are 5 or 6 Starbucks with in walking distance to my house. That's kinda silly. Remember Krispy Kream? Yeah, they thought they wanted to be Starbucks too. The over expansion hit them quicker because people aren't addicted to donuts like they are coffee. Which makes me wonder if the drug trade is slowing due to the economy too?
Posted by: dallas | Jul 08, 2008 at 09:07 AM
I guess it's fun to kick someone when they are down. I am not a fan of Starbucks myself but they should be given credit for elevating coffee. I am old enough to remember the only coffee you could get in the grocer store was Folgers or Maxwell House. Now there are dozens of types and styles of coffees at your local store. Also 7-11, McDonald's and Dunkin Donuts have better coffee now because of Starbucks. I prefer Monsoon Malabar which you can get a Central Market.
One last thing I have an economic interest in Starbucks. My daughter works there part time which help pays for her gas going to school. I guess I need to start looking for an electric car for her.
Posted by: David | Jul 08, 2008 at 04:24 PM
Here's a map of Starbuck's closing
http://seattletimes.nwsource.com/flatpages/businesstechnology/locationsofstarbucksstoresclosingacrossthenation.html
Posted by: Sarah Burns | Jul 11, 2008 at 10:52 AM
NOOOO!!! That's MY Starbucks! Oh, how disappointing. I hope that map is wrong.
Posted by: dallas | Jul 11, 2008 at 12:29 PM
Really though, I can't believe they are closing the Starbucks on Greenville and Penrose. Every time I go in there it is packed. I guess now I'm going to have to walk all the way to Mockingbird Station for my overpriced coffee. I personally don like any coffee if I don't feel like I'm getting ripped off.
Posted by: dallas | Jul 11, 2008 at 12:33 PM