"Save Your Starbucks? Don't save 'em. They don't need to be saved."

Fresno Bee columnist Mike Osegueda writes: "Don't let a rough economic year, slumping profits and that closure list fool you -- it's a good bet that Starbucks execs aren't starving. So why are all these local people rallying a big national corporation that's just taking your money back up to Seattle?" Where's the support for local businesses that have had to close? he asks. "Instead of jumping on the Save Our Starbucks bandwagon, Fresno needs to embrace what's unique to us." (Read the Fresno Bee column)

Comments

[Tracy]

Yes! Go Fresno!

[truth]

The money's not going to Seattle. It goes to Wall Street, who owns 65% of the company.

[NewbieSM]

That Marks & Herndon location is SUPER slow and in a really bad spot.

[Mickey Blue Eyes]

Ah! A bit of sanity in the "Save our Starbucks" mania.

If the local Starbucks had enough business to save it, it wouldn't have gotten on the chopping block in the first place.

And I agree that going to a locally-owned coffee shop is more deserving of being saved than a multinational corporation.

But then again, the local Starbucks probably employs more people than a local coffee shop.

[green apron monkey]

to Seattle!

Better burn your money than see go there!

/sarcasm

this one made me laugh- Fresno is known for being the punchline to many jokes, I'm surprised to hear this columnist refer to such local culture...if anything, Fresno is remembered as the city in the rearview mirror for a LOT of people who got the heck out of there...

All these folks with signs and banners and petitions to save Starbucks, why don't they go inside and buy a latte, a muffin, a cd, and a travel mug? The only way to save Starbucks is to buy their products. Standing out in the streets with poster board is going to scare people away from cultish Starbucks protesters. Starbucks isn't a religion or a mecca, it's a business.

[deusx]

"If the local Starbucks had enough business to save it, it wouldn't have gotten on the chopping block in the first place."

That is not necessarily true.

Some of the closings are nearly arbitrary in the details. Locally there is a new store comping over 20% in it's second year and it has a multi-year lease agreement so a massive lease hike can't possibly be in the works. Also locally is a store in a dying strip mall, it hasn't profited in five years yet isn't being closed.

When these closings first started, I was pretty behind the concept. The offices responsible for finding new store locations, at least locally in Ohio, were apparently just throwing darts into a map of the area and finding a retail property near it because there was no evidence of intelligent planning behind the new store locations in many cases.

I was all for pruning the dead weight locally and as a company and getting back to basics. Unfortunately, like so many other initiatives in the past six years, the practice isn't living up to what was claimed. In my opinion, Howard is trying to superficially make the company look in better shape and will sell it with the Board's blessing. It's hard to trust a guy whose actions have deviated so much from his claims.

[Gary Green]

Char-Bucks? Who needs them?

Their predatory business practices have put many good coffee shops out of business simply because they know how to push people's buttons, not because they have a good product.

Their coffee is roasted to the point where any character is gone. It's prepared by people who really don't know coffee, they know the manual.

Fewer $tarbuck$ can only be a good thing.

[GlenFeliz Regular]

Fresno is the foreclosure capital of the United States. I have been to that Starbucks in Fowler, south of Fresno...hopefully they have more traffic during the week.

[ssignatz]

One of the key issues in store closures has been accelerating the depreciation recapture for newer locations, to more quickly offset the massive amounts S-bux is having to pay out in broken leases, and unneeded equipment purchases, etc. In Baton Rouge for example- they top 3 stores are not the 3 remaining open after closing 7 others. Yet another short sighted, short term band aid to try to pump up share price, rather than build long term recovery. When all has shaken loose, how does closing higher performing stores while leaving lower performers open actually benefit the company? It doesn't.
Howard keeps crapping in his bed, standing up, looking around with a shocked expression on his face and yelling "Who keeps crapping in my bed?!!"

Its Hubris, Howie- Thats who...Hubris keeps crapping in your bed- And he doesnt even realize it.

[ssignatz]

One of the key issues in store closures has been accelerating the depreciation recapture for newer locations, to more quickly offset the massive amounts S-bux is having to pay out in broken leases, and unneeded equipment purchases, etc. In Baton Rouge for example- they top 3 stores are not the 3 remaining open after closing 7 others. Yet another short sighted, short term band aid to try to pump up share price, rather than build long term recovery. When all has shaken loose, how does closing higher performing stores while leaving lower performers open actually benefit the company? It doesn't.
Howard keeps crapping in his bed, standing up, looking around with a shocked expression on his face and yelling "Who keeps crapping in my bed?!!"

Its Hubris, Howie- Thats who...Hubris keeps crapping in your bed- And he doesnt even realize it.

[Deusx]

Dear Gary Green,

I have years of observation, and business statistics from Seattle and now Columbus, OH to support my assertion that you don't know what the F*** you are talking about but instead are parroting what you have been told.

Do you have any numbers showing that the number of independent coffee houses goes down in an area that Starbucks moves into?

I'm so terribly tired of this oft parroted and little supported belief. Starbucks definitely is not the Mother Teresa of business' but lets blame them for what they actually do.

[StLouieDrip]

@Ssignatz: One of the key issues in store closures has been accelerating the depreciation recapture for newer locations, to more quickly offset the massive amounts S-bux is having to pay out in broken leases, and unneeded equipment purchases, etc. In Baton Rouge for example- they top 3 stores are not the 3 remaining open after closing 7 others. Yet another short sighted, short term band aid to try to pump up share price, rather than build long term recovery. When all has shaken loose, how does closing higher performing stores while leaving lower performers open actually benefit the company? It doesn't.

Those are interesting points. Since sbux made very bad decisions about where and why they should open stores, it makes sense that they will also make bad decisions about why and where to close stores. In a backward way, it makes sense that some of the store closings don't make sense.

But I don't think Howard is personally deciding which stores should close, just like I don't think it was Howard who decided which stores would open. There's probably a "store closing" department or committee making these strange decisions?

[ssignatz]

StLouieDrip-
It is entirely probable that howie is not pulling the trigger personally, but it possible that he has his fingers in every single aspect of every single decision. My whole point about his hubris and not realizing its him crapping in his own bed is that he believes all of his own press, and believes himself infallible. He may be a lifelong Democrat, but he sure seems like the Bush Administration to me. (They never do anything wrong or admit mistakes, either) howie mouths the words about sharing the blame for bad past decisions, but I dont buy it that he really belives it. He thought he knew how to run a basketball team, publish a magazine, run a high end sandwich concept..etc etc etc and on and on- how well did he do with any of those? (Ah, not very, is the polite answer)
He is desperate to bump up the share price- as they MUST look like a tasty buy out target at current pricing. Hell, Nestle can buy them with Euro's and get a hell of a deal... Folks who say howie wont sell- thats why they are sometimes called "hostile" take overs, you dont get a choice. Wanna bet a nickle that if Nestle came in and offered $25 a share, a huge freaking flood of folks would sell out? How about the institutional investors? a chance to get out while saving some face- not to mention mitigate some horrendous losses? Could happen kids- and howie could be watching from the side lines.
Full disclosure- I am a competitor, I hope he stays on forever. We just took over a spot that S-bux abandoned this year (never opened, just signed a lease) So they are paying the first year +, and not generating a dime out of it. Absolutely beautiful. (for me, anyway)

[former manager]

To Gary Green, I must strongly second Deusx's comment: Starbucks largely created a new market that allowed local independents to thrive. For reference, please read these articles. (Especially before regurgitating any more common knowledge.)

http://www.slate.com/id/2180301/fr/rss/

http://online.wsj.com/article/SB103281584070907553-search.html

Cheers!