Wednesday, January 30, 2008

Interesting times at Starbucks.

A new Starbucks opened just a short distance from my house this month. I realize many of you could utter the same words with identical accuracy. I've picked up several books on the company, its impact on our broader culture, and even its spiritual implications. But today I came across this news article:
    "Starbucks ratcheted down the number of new stores it plans to open this year and said it would close some U.S. locations as it reported a 2% rise in fiscal first-quarter earnings Wednesday.

    "The company said it's slowing the pace of store growth worldwide by 350 to 2,150 stores for fiscal 2008, down from a reduced target of 2,500 earlier in the month. That includes closing about 100 underperforming stores in the U.S. and opening about 75 new stores abroad."
Probably the most remarkable statement in those opening paragraphs is the idea of Starbucks closing some locations. That just doesn't happen. This latest news certainly doesn't mean the company is headed for disaster, but it could mean that Midas has left the building...