US economic woes hit Starbucks

July 3, 2008

It would seem that problems with the American economy is hitting Starbucks quite hard.

According to an article on the BBC, they are closing 600 of their outlets.

The coffee chain Starbucks plans to close 500 stores in the US on top of the 100 it had already announced.

It’s not as bad as it sounds in some respects as Starbucks intends to open 200 new stores this year. The 600 which are closing are the stores which are performing badly and interestingly most of the drive-thrus are closing.

I have noticed a few Starbucks in the UK have recently closed.

This reaction to a worsening economy shows how businesses respond when sales fall as a result of an economic downturn.

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