Australia is a market that has extremely high rents and very expensive labor rates... Some of the real estate that was chosen there in the early years perhaps was a little bit too aggressive.Starbucks way overexpanded in the 4-5 years leading up to the mass store closures. Australia had thin margins, so it was an obvious target. And at the same time Starbucks was cutting stores in Australia they were also cutting them in the US as well, including in Seattle.
The funny thing about Starbucks is its appearance in a neighborhood actually helps the small, local shops.Isn't it Starbucks' operating practice to saturate a neighbourhood with outlets, running them at a loss until independent competitors go out of business and then pruning them back? It certainly used to be, and has aroused many complaints.
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Everyone behind the counter knows it's just more whining.
posted by bam at 7:08 AM on February 27, 2010 [3 favorites]