When we think of coffee, the first thing that comes to mind is Starbucks. Whenever we walk pass Starbucks, we always see a crowd of people waiting in line for their drinks. Their beverages and snacks are very pricey, so why does everybody still go there? Why do people go there to study? To the bathroom? Or to meet up with friends? It all seems so simple when you just go into the store and purchase a cup of coffee. It seems that this company is staying strong, and is making a great amount of profit. However, Starbucks hit a financial crisis in 2009. This forces the company to cut back to the point that they have to close down 300 stores. Mr. Schultz, the Starbuck’s chief executive says that “These decisions have been made to ensure the company is leaner and prepared to endure a worsening economic climate”. Due to the economic recession, many people are cutting down on the amount of Starbuck purchases. This affects Starbucks as a whole as well as the pay that employees get. This may gradually result in the close down of stores as said above, leaving employees jobless. By closing down stores, it is simply just helping to preserve the future for Starbucks.
Word Count: 210
Work Cited:
http://www.nytimes.com/2009/01/29/business/29sbux.html
http://www.redroom.com/blog/bryant-simon/starbucks-and-economic-crisis
http://living.oneindia.in/cosmopolitan/cosmo-trends-n-style/2009/starbucks-coffee-250209.html
http://www.thefreelibrary.com/Financial+crisis+hits+coffee+sales+at+Starbucks-a01611724926