Why the coffee chain is shutting hundreds of US stores
Sylvain Charlebois is the Director of the Agriculture-Food Analytics University of Dalhouse in Canada, Canada, It is also known as the “Food Professor ,, that the economy is probably a factor, but the biggest reason is that it probably cannot adapt to consumer habits and Starbucks.
For many years, the coffee chain, which has been found everywhere, has marketed itself as “third – – in a place without your home or workplace, you can meet, socialize, relax, use your laptop, read, read, whatever.
‘Many more coffee shops have emerged that offer better service at a cheaper price.’
Sylvain Charlebois is the Director of the University of Dalhouse-Food Analytics in Dalhouse in Canada, Canada
However, Charlebois says the third place is “much more competitive”. “More coffee shops, which offer better service at a cheaper price, have emerged. Starbucks are seen as extremely expensive. Facilities are not always well -groomed.”
Increased competition is evident around my office in Washington, with a Starbucks on the ground floor of the building, a few doors down, Joe & The Fruit juice and the next block of blue bottle coffee in the next block. Only the blue bottle from four people is reliable to Australian standards.
However, Starbucks, in the United States, the chain can not penetrate a famous coffee culture in Australia in a way that there is no. Even if the coffee tastes of American consumers mature, it is still an open way of speed.
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Charlebois says that Starbucks is not only competing against other coffee suppliers, especially young people are looking for matcha drinks, chai, bubble tea and another trend. “Starbucks adapted, but the connection is not so natural, or he says.
Starbucks rejected an interview. However, CEO Niccol says that most of the closed stores cannot create a physical environment that our customers and our partners cannot create ”.
According to Niccol, the first results for the stores of a new pilot program in New York and Southern California shows that the stores visited more frequently and stayed longer.
What about “Trump factor”? Charlebois suggested that US President Donald Trump has been able to play a role in the closing of the store in Canada, where local purchasing and avoiding American brands has become a national entertainment since he hit the northern neighbor with tariffs earlier this year.
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It can be too early to assess the impact of Trump’s 50 percent tariff on imports from Brazil, which is the source of more than one third of America’s coffee, but it can only apply upward pressure on consumer prices. My local independent cafe in Washington has recently removed a cup price by the US50 ¢.
But there’s a problem with Starbucks. Although both stores were equal to my apartment, I did not enter Starbucks in eight months living there once. And considering the local independent crowds compared to Starbucks, I wasn’t alone.
So, is this trend terminal for Mega chain? “I think we’re looking at the right -sized phenomena instead of seeing a complete fall of a company, Char says Charlebois. “But I think behind the brightest days of Starbucks. We will see more competition.”
