In New York we like to joke about how, at some street corners in Manhattan, the storefronts of three different Starbucks are visible.
Granted, whenever we walk by a Starbucks here they are usually packed, with long lines and rarely any seating for those who might want to have a meeting or get some other work done. But this is Manhattan, where lots of things are like that.
Apparently, not all Starbucks are that busy, judging from the company’s announcement that it is closing 600 units by some time next year. Sure, that’s not a huge chunk of the chain’s 11,000-plus US stores, but a big jump from the previous target of 100 closures.
The fact that Starbucks overextended its real estate is old news now. But the company seems to have other problems, including the fast death of its highly touted new blend.
So what’s next for the coffee giant? More store closures? Or have they likely cut all of the excess fat?