Monday, July 07, 2008

Cheer up on your Competitor's Loss

There's no intention to turn this blog to a newscast but sometimes I'd like to write about the things which attract my attention. The Seattle-based coffee chain store, Starbucks, announced a few days ago that it will close more than 600 stores soon.

That doesn't bother me and I also have no sympathy for them because I never was a Starbucks fan and never liked it. What's surprising is all the people who are happy of what's happening to them. It's said the coffee shop grew to fast in a short period of time. There was once news of Starbucks cafe opening in Forbidden City in Peking, China. Some opposed to it as a sign of an assault to Chinese culture and history and some accepted it as a good, relaxing drink where it might be actually needed. I saw Starbucks both in Germany (Koln) and UK (Nottingham) but seem that those days are over.
Many people are happy because they see that as a relief for local businesses. Small town of Squamish has two Starbucks cafe and both are usually filled with customers while Tim Horton's, McDonald's and other local cafes have their patrons. So I don't that was a market to compete. What I see now is in some neighbourhoods people turn to other cafes and that's good for their businesses. Starbucks had already problem in Europe right after McCafe emerged. I tried it in Koln and that was good. Thus we can conclude that it lost a battle in this competing market.
(Photo: Starbucks sign)

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