Looks like the leftist notion of minimum wage hikes and overregulation are forcing Starbucks’ corporate decision makers to close approximately 150 locations.
Despite the big PR bias-training maneuver, the over-saturated coffee chain is now focusing on moving its development to rural and suburban areas closing locations often found in “major metro areas where increases in wage and occupancy and other regulatory requirements” are hurting the bottom line, according to CEO Kevin Johnson.
“Now, in a lot of ways, it’s middle America and the South that presents an opportunity.” It’s funny how that works.
Perhaps they’ll find some prime real estate…just next door to Chick Fil A.
Here’s more from Hotair…
A ubiquitous as Starbucks appears to be, their growth has begun slowing of late, and not just because of public-relations disasters like the one that took place in Philadelphia. Existing-store sales have been declining over the past several years and especially over the last two, Bloomberg reports, prompting CEO Kevin Johnson to start shutting down some stores while looking for greener pastures elsewhere. And guess what one key criterion for these closures might be?
Although business abroad has been booming and the chain has been opening more and more cafes, U.S. sales growth has stalled for the company that brought espresso to the masses. With about 14,000 stores domestically, Starbucks is now pumping the brakes on licensed and company-operated locations, with a renewed focus on rural and suburban areas—not over-caffeinated urban neighborhoods where locals already joke that the next Starbucks will open inside an existing store.
The closing stores are often in “major metro areas where increases in wage and occupancy and other regulatory requirements” are making them unprofitable, Johnson said. “Now, in a lot of ways, it’s middle America and the South that presents an opportunity.”