When times are hard, something has to give. And for many Americans, eager to cut back on their spending, a cosy afternoon latte has become one luxury too many. According to analysts, that is one of the reasons why Starbucks is planning to close down 600 of its coffee shops across the United States. Some 12,000 jobs are set to go.
“Starbucks has been expanding very aggressively,” said Lars Perner, a professor of Marketing at the University of Southern California.
“They have charged very high prices and there has been a lot of competition coming in, so Starbucks has had this coming for some time.”
Views on the closures were mixed among customers in Los Angeles. One man said that a cup of coffee was all people could afford nowadays.
“You can’t take this away from us. This is all we have got left!”
But a woman did not seem too worried.
“Oh, there are plenty of other coffee places. I would not be too upset, so it is alright,” she said.
Despite the closures, Starbucks is still opening new outlets in the US, though fewer than initially planned. And to counter the economic slump in the States, it is also expanding internationally.