Starbucks To Close 150 Locations, Pull Back On Franchise Expansion Strategy

Starbucks might finally be realizing what stand-up comedians have been saying for years: There are too many Starbucks.

The coffee titan announced that it will be closing 150 locations in fiscal year 2019, after years of averaging about 50 closures annually, the Wall Street Journal reports. Starbucks CEO Kevin Johnson acknowledged that the strategy of rapid franchising, with locations within supermarkets, airports and the like, had overextended the company and reduced profitability.

Starbucks has reportedly opened 3,000 new locations in the past three years, passing McDonald`s in terms of store count in the U.S. But sales have slowed in that same time, with the company reporting flat traffic in this year`s second quarter and predicting 1% growth in Q3...

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RSK: I still laugh when I see a Broker who has a strip mall for lease say "Great location for coffee shop"....right.

Ken Notes: but great location for co-working coffee shop might be just the ticket...