July 01, 2008
Reason #25 the Economy Sucks.
Tags: coffee, economy, sacramento, starbucks(For reason #24, see Chris’ Twitter feed on his site.)
Back in the day, around 2002 or so, I wondered aloud whether anyone knew of any Starbucks that had actually closed. I was walking through the Financial District in San Francisco at the time and one of my companions said he saw where one had closed but another one opened around the corner. “That’s just moving,” I said, “and it doesn’t count.”
But apparently even the relatively inelastic demand of our nationwide caffeine/sugar combo fix can’t postpone the announcement that Starbucks will be closing 600 stores, most opened recently. Even more interesting, the article mentions an “internal watch list.” Starbucks has been keeping an eye on its unprofitable stores without actually closing them:
They were not profitable, not expected to be profitable in the foreseeable future, and the “vast majority” had been opened near an existing company-operated Starbucks, Bocian said.
In other words, Starbucks bizzare strategy of competing with itself backfired. As usual when a company announces that it is scaling back operations and kicking employees to the curb, SBUX gained in extended hours trading.
The article did not get specifc to Sacramento, but it did get me to wondering which Starbucks locally would could be the target of a closure. There are about 20 Starbucks within two or three miles of the Capitol.
My nominations of ones likely to get the axe (in no particular order, and not necessarily ones I think should close):
J Street and 26th. I love this Starbucks. When I lived in East Sac it had just opened and I’d always stop in on my way in to work (walking) downtown. It’s long and narrow, it’s cramped, and it’s virtually hidden among all of the other businesses along J Street. Blink and you might miss it. Which is its problem. There’s another one just seven blocks west that is far more popular. I’ve never seen this one crowded, except maybe around Christmas.
717 K Street. This Starbucks at the light rail stop right before the train turns south, by the Westfield Mall, has an interesting mix of state workers, attorney-looking types, and their clients. It is an unfortunate Starbucks in a very unfortunate location. Given that there is another at the other end of the mall, as well as a very popular one on 9th between I and J, I’d put this one high on my list of closures.
Safeway at 19th & S. C’mon, there’s a Peets at the other end of the parking lot for God’s sake. You don’t even have to cross a street.
Which ones do you think (dear reader) are likely targets for closure? Any in the ‘burbs?
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Here in the burbs (Carmichael) Starbucks come in pairs. I do not lie: two stores in walking distance from one another. I assume a thinning is probably to be expected.
July 01, 2008 @ 10:55 pm
I am not much of a Starbucks person but I agree that the one at 26th and J seems doomed, which is a bummer. The employees there are great and it is really a nice little coffee shop. I hope the one near the Peet’s on J Street in East Sac is safe … it has the kid area and we might not make it through the winter without it.
July 02, 2008 @ 5:00 am
I don’t have any more SBUX to add to the list, but I can’t help but wonder if this doesn’t also have some repercussions for all the Peet’s stores that have been blossoming about town. Talk about a 180 on an expansion strategy! When I was in college, the only Peets outside of California opened in Evanston. It wasn’t until the past few years that Peet’s seemed to be engaged in a Starbucks-style expansion, and I can’t help but note that it followed close on the heels of the death of its founder, Alfred Peet.
July 02, 2008 @ 8:01 am
Well, out here in Nomas they put coffee shops in the bookstores and Target so they’re almost recession proof.
July 02, 2008 @ 8:03 pm
Joe – I actually think those might be at the top of the chopping block. But maybe not.
Beth – I’m pretty sure both SBUX near Peets on J (38th and 19th) are fine they’ve always been really busy.
Maya – Peets expansion started before Al died, although it has accelerated in recent years. I remember when the first two opened in Portland – in fact I was a regular at one on NE 15th and Broadway.
Jeff – in urban settings too. San Francisco and Seattle are pretty much models of the SBUX within spittin’ distance (assuming you can spit across a street).
July 02, 2008 @ 8:11 pm
Maybe SB has finally reached the point of over saturation? Seriously, who in the SB planning department thought building stores within blocks of each other was a good long term plan?
July 09, 2008 @ 5:40 pm
The list is pretty short for the Sacramento area…
http://www.sacforums.com/foodrecipes/starbucks_closing_in_sacramento-t1771.0.html;msg3746#msg3746
August 01, 2008 @ 10:51 am