Starbucks as a Leading Indicator
It was bound to happen. As houses in neighborhoods get boarded up because of foreclosure and abandonment, neighboring businesses eventually follow.
With $4.00 + coffee drinks, Starbucks is certainly a fine example of American excess. Over the past 10 years, Starbucks has grown exponentially here and abroad. Now it has hit a brick wall. While coffee is a necessity for some, myself included, Starbucks coffee is a luxury. Working five days a week, one can easily spend $80 to $100 a month if they buy Starbucks every day.
Last quarter, Starbucks announced its first same-store sales loss in the three years it has published those records. Much of Starbucks growth has come from opening new stores which management has also put a damper on. Today the Seattle based coffee company
announced a new CEO and store closings. If this isn’t an indicator of tough times ahead, I don’t know what is.