Courtesy of U. S. National Achives
As I try to enjoy my White Chocolate Mocha one morning I wondered as to why we spend over four dollars on one cup of coffee? I mean for some of us this addiction is a daily occurrence and a big drain on our bank accounts. Coffee, to me, is worth every penny but shouldn't Starbucks be rolling in the dough these days? As I began to research this I came upon a radio report about Starbucks.
Just two years ago the chain had to close over three-hundred of its stores for lack of funds. This seems surprising because we all know there is always a long line at most times of the day. The most shocking part? Just in 2010, there was the first dividend paid back to investors. This seems to be a long awaited and much appreciated payment! Don't feel too bad for the company once the owner, Mr. Schultz made some much needed changes the profits shot up and he was able to almost triple the amount of stores world-wide from over 5,000 to over 15,000 (Kaufman par., 1).
Since then there has been many ups and downs within this company. Schultz began to do reward programs and partner with other companies to increase the "wow factor" of the establishment. In late 2008, around 600 more locations had been shut down which may seem like a vast amount. However, the report ended with an estimation of how much Mr. Schultz himself (solely as an investor) had been... it was right around 42.5 million dollars. It is safe to say that he, and the company he helps support (as well as the caffeine-lovers of this world just fine in this recession.
Kaufman, Wendy. Starbucks Fires CEO; Founder Returns to Helm. NPR, 2008. NPR. Web. 21 Apr. 2011. <http://www.npr.org/templates/story/story.php?storyId=17938601>.
Dear Sara,
ReplyDeleteI really enjoy Starbucks as well, and I enjoyed this blog post. I think it's good how you included some background, and personal thoughts.
One thing that stood out to me was when you talked about how many Starbucks stores closed for its lack of funds. If the company's drinks are so expensive and popular you would think they would be doing just fine, as you stated early on.
Something I agreed with was not to feel too bad for the company. If Mr. Schultz can get back that fast and open up over that many stores, then I'd say he's doing just okay. It's good to know that the owner and investor in this company works well together with other companies.
Thank you for writing this blog. It was very interesting,and you seem like a true coffee lover.