Is Starbucks closing their doors not just because of the economy but because of competition like McDonald's?

Question

NEW YORK (CNNMoney.com) -- 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.

Answer 1

I didn't hear that they were closing their doors. If they do decide to i believe it will be because of competition like McDonald's.  McDonald's had good coffee that won a taste test vs. Starbucks, not as many options, but way more affordable. I think that Starbucks used to fashionable, but now it has lost even that. You used to be cool if your drank Starbucks, now your just a wannabe snob, nobody likes that. So who wants to drink a coffee from an out-of-date coffee shop that more pricey and less tasty as its competitors? Nobody. McDonald's isn't fashionable, but that was never their appeal.

Answer 2

McDonald's's is not competition for Starbucks! They are doing what many other companies do everyday.

Answer 3

I would prefer independent stores rather than chains.

Answer 4

They're running out of corners to build on, in metro areas....what did you expect?

Answer 5

Well it's kind of hard for them to build anywhere else considering there is one everywhere. Even in my small rural town. I like drinking there every once in a while, but it's too expensive. Especially when you can go to McDonald's or Dairy Queen and get the same thing, in a bigger cup, for a much cheaper price.

Answer 6

According to the article you've listed they are pretty much making a smart business move.  Lots of companies do the same thing based on trend of course.

Answer 7

If Starbucks is closing their doors, it is because they are too expensive.  Believe it or not, but not many people go in there anymore. 

Answer 8

Where in the world did you get the notion that Starbucks was closing?