When was the last time that you went to Starbucks for a coffee? I have to be honest here and say that I think it was more than a month ago! I know, it is quite strange especially if you consider that I used to go there at least three times a week. I guess it is a combination of high prices and busy times. In any case, from what I hear, we just might have more reason to visit Starbucks pretty soon. News has been going around that the giant coffee chain is going to slash its prices because of plunging profits. Sky News has this story:
The chain reported a net profit of £17m for the 13 weeks to March 29 compared with £73m for the same period last year. The company has announced plans to close 960 stores globally as consumers cut back on their spending. Since July it has shut 507 stores in the US and 64 shops in other countries. The closures are part of a plan to close underperforming stores and shave costs companywide.
Starbucks has also been stung by suggestions that some of its drinks are too expensive. Chief executive Howard Schultz said prices on some products in some markets would now be cut. The perception that its coffee is too expensive has led to companies such as McDonald’s making inroads in the speciality coffee market.
ll I can say is that it is about time that they lowered their prices. After all, we do have a lot of other choices and just because their prices are high does not mean that their coffee is better than the others, no?