Starbucks

I’m a little mixed on this message.  Any business should be responsive to the stockholders.  If the company can’t earn a profit in a black neighborhood, it shouldn’t be there.  However, the CEO should stop being such a hypocrite about race.

Could the federal government ever do what Starbucks did?

In January 2009 the stock of Starbucks was about $7, and today it’s in the mid-fifties, down a little from a few months ago.  So how did they turn it around without a government stimulus package?

“The company cut costs when a serious recession hit the economy in 2008. Raises were slashed to a minimal amount, vacation and personal time was cut and the health plan was altered to require more out-of-pocket expenses on the part of employees. The company pushed product sales hard, requiring managers to more aggressively market retail items such as coffee mugs, coffee makers and ground coffee to their walk-in customers.

Recently, the company has made some changes to improve its compensation for management employees. Starbucks has maintained health-care coverage as well as a stock-option program, known as Bean Stock. The company has also increased its contributions to its 401(k) program a retirement savings plan that is available to hourly and salaried employees.”

Read more: The Average Salary of a Starbucks Store Manager | eHow.com http://www.ehow.com/about_7486618_average-salary-starbucks-store-manager.html#ixzz2MIILv2l9

Sadly, no one in this administration and very few in Congress have business experience, and when they get to Washington it’s like having play money to spend.

The closing of Starbucks

600 company-owned Starbucks stores are on the chopping block in a bid to weed out the losers and improve profitability. Here is
Ohio's list. None of these closings affect me personally, but today's WSJ reports customers are organizing "Save Our Starbucks" campaigns. I don't use Starbucks often--coffee is a bit strong for me, but it beats a fast food store if I have a choice. Another one has opened recently near our home in that ugly monstrosity on Tremont Road (multiple-use trendy), but it's within spitting distance of the Caribou and Panera's that I regularly use. I've seen Starbucks in some odd, difficult to reach locations, and they certainly aren't after drive-bys, because you'd have to plan miles ahead to figure out how to exit the main road and find the access. There's one on Bethel Road in Columbus between a shopping center and an underpass which you can get to only if you're driving east; there's one on the south side of Henderson Road in a maze and jumble of small food shops, banks and bars that you could miss if you blink; the access drive way for the new one on Tremont Road in Upper Arlington is so difficult to find that you might as well continue on and go to Caribou, just a block further south. Really, some of these seem designed for failure, or a training ground for difficult assistant managers, but what do I know? They aren't on the closing list. Maybe no one knows where they are?

Cross posted at Coffee Spills