Clark predicts the end of the Starbucks era? on clarkhoward.com

Starbucks has become the kind of American icon that elicits both very positive and very negative reactions. On the one hand, people hate the company because they homogenized the coffee shop experience. On the other hand, folks like Clark's sister love Starbucks and go to the same location everyday.

While Clark is not a coffee drinker, he likes Starbucks in theory because they have a reputation of treating employees better than most other fast-food chains. Yes, Starbucks is essentially a fast-food chain -- even if you don't think so!

The company's business plan has long focused on aggressive expansion. Sometimes they've opened multiple locations within close proximity in high-traffic areas. The goal has been to destroy weaker coffee shop chains and indie shops.

Unfortunately, the expansion proved a bit too extreme. Neighboring locations cannibalized each other's customers and saw a swift drop in sales when the economy contracted.

Now Starbucks is closing around 600 stores and laying off several hundred people.

Also factoring into the Starbucks squeeze is competition the chain is facing from McDonald's introduction of cheaper high-end coffees.

But Clark thinks the latest Starbucks news marks the end of an era. Previously, we as Americans didn't care about our guilty little pleasures. We just charged the plastic and didn't worry about how we'd pay for it down the road. Now we're worried.

What others are saying

starbucks coffee is not $5 !!!!!!!!!!
i pay less that two bucks for a medium cup of coffee at starbucks. the cost at dd is only a few cents less. but the coffee at dd is weak. i can't even drink a cup...its like brown water. many people like that, but i prefer my coffee to have a punch and keep me going. the employee's at starbucks are much more friendly that at dd where they hardly speak enough english to do their jobs. give me starbucks over dd any day. those people who think that a cup of starbucks coffee is $5 have probably never been in the store or tasted the coffee. 1.98 for a medium and that is including my 7% sales tax! its 1.70 somthing at dd and McD for brown water.
By jenna @ 11/18/08 09:51:49 AMreport abuse
It's not $5.00
I'm not sure where this urban myth of $5.00 cups of coffee at Starbucks got started. You can - and always have been able to - buy a cup of brewed coffee for $1.60 a cup (it used to be even less til last year). That's only about 20 cents more than McDonald's - in a much nicer atmosphere, for a much better product. If you're drinking a large fancy drink with lots of expensive add-ins, it costs more - but at that point, it's no longer "a cup of coffee". I don't understand why people have started to hate Starbucks. This is a company that pays well, provides benefits for even part-time employees, tries to do business in a way good for the environment, and sells a harmless product people want to buy. Why all this happiness to see a good company struggling??
By Sydney @ 07/07/08 08:12:10 PMreport abuse
Yuppie-kay-yey
$5 Dollars coffee? Why? It doesn't even taste good! Snobs drink it! Time to close that store! Move on!
By Andrew R. @ 07/07/08 08:25:43 AMreport abuse
coffee
if you ask me it was bad coffee for the price, any price there is better coffee out there that you don't have to pay six dollar's a cup for so if they want to keep the coffee drinking public lower the price or fold up. like i said there coffee is not worth the price.
By james withrow @ 07/06/08 02:26:34 PMreport abuse
The "Experience" is lacking IMO
Starbucks might be OK if it weren't staffed by PPPs -- pale, pierced, people. I'm so sick of the 'tudes offered by these emo types who seem to think "no problem" or a blank stare is a good substitute for "thank you". I've started to avoid businesses who hire these types and maybe I'm not alone.
By Marty @ 07/05/08 01:29:36 PMreport abuse
Starbucks
Yes, Starbucks is going to have to cut several hundred jobs. But, many of their employees will be able to work at other locations. So much for treating their employees "well" Clark.
By Smedley @ 07/05/08 11:19:26 AMreport abuse
Starbucks coffee
I lived in Europe for 5 years, three of them in Italy where I first experienced cappuccino for as little as 35 cents a cup. By the time I left Italy in late 2002 it averaged about $1.00 a cup in a ceramic cup served on a saucer with a metal spoon in various quaint mom & pop shops. The experience is something I remember to this day not because of the setting but because the coffee was so good. The coffee at Starbucks is OK, but not great, and certainly not at $5.00 in a paper cup. Starbucks learned an old marketing trick, 'sell the sizzle, not the steak'. Most Americans who think this is great coffee bought the sizzle.
By J.J. @ 07/04/08 11:08:50 PMreport abuse
Starbuck's
yes, they were to aggressive and thought they can beat Dunkin Donuts, which I feel its a better coffee, They got to big and lost.
By Jose @ 07/04/08 07:43:42 PMreport abuse
Harry Truman
Harry made tough decisions and lived with the consequences. Nobody ever accused him of personally profiting from what he did. He lived in the same house he and Bess bought when he was a habadasher after serving in World War I. And unlike too many leaders today, he served with distinction on the battlefield.
A real man, unlike the spoiled rich kid we have now.
I tried some Starbucks Coffee and liked it, but there is no way I'm spending $5 a cup for coffee, no matter how good it tastes.
By Brian @ 07/04/08 12:29:39 AMreport abuse
Harry Truman? LOL
FYI, President Truman left office with an approval rating of 23%, lower even than GWB. History has been kinder to him and his legacy than the voting public and the Press in 1952.

http://ask.yahoo.com/20051011.html
By Ed M @ 07/03/08 10:22:56 PMreport abuse
Starbuck's Era Ends
It is my position that Starbucks provided an experience.
By Corro'll Driskell @ 07/03/08 10:00:19 PMreport abuse
Not His Fault
We keep hearing how nothing is Bush's fault. There is nothing he can do about the economy, the price of gas, the banking collapse, and on and on passing the buck on every issue. If you believe there is nothing he can do and these calamities are not his fault, I have a bridge for sale!

Harry Truman had a sign on his desk that read "The buck stops here." President Truman was a man who accepted the responsibility that came with the office in which he was ELECTED to serve. "Give-em-hell Harry" was also not afraid to nuke the enemy who attacked our country. On the other hand, "Let-them-eat-cake George" is more like Herbert Hoover who did nothing.
By PJ @ 07/03/08 04:53:36 PMreport abuse
Saving on Gas
Hi, Clark I just read about this new company called MyGallons.com. This is where you can pre-purchase your gas. I just wanted to know if it was any good. Thanks
By M. Strickland @ 07/03/08 03:30:34 PMreport abuse
Recession, depression, correction?
"Something has shifted in the economy, but we've seen it come roaring back before."

We are in the initial stages of an economic meltdown not seen in this country since the 19th century. Our banking system is burdened by debt and leveraged hedges so large that they will be impossible to honor without destroying the U.S. dollar. Starbucks is the canary in the coal mine, and prudent investors and savers should not ignore the clear warning signal.
By Jeremy @ 07/03/08 11:56:04 AMreport abuse
RE: Bush Depression
i shake my head at those of you that call the current economic times "Bush Depression." does the president really have the power to put money in your wallet or bring down the price of gas? NO. the liberal controlled congress has blocked the U.S. from drilling oil offshore. so much for nanci pelosi keeping her word... when she became speaker of the house she "promised" that she would lower gas prices (back then gas was in the $2.90s).
By Bright One @ 07/03/08 11:16:26 AMreport abuse
Bush Depression?
Someone needs to consult Dr. Webster to determine the definition of "Depression." This is what I would call a Market Correction, not the end of an era. Something has shifted in the economy, but we've seen it come roaring back before.
By Kinger @ 07/03/08 10:45:51 AMreport abuse
They are drug dealers
Last Sunday in the AJC, they had a card you can use to get one free cup of coffee a day until the 14th. They are trying to get people addicted again and hoping the sales pick up after 2 weeks of free coffee.
By Logical1 @ 07/03/08 09:23:37 AMreport abuse
Starbucks
They are selling five dollar cups of coffee during the Bush Depression and can't imaging why people are not flocking there to buy it... common sense!
By PJ @ 07/03/08 05:17:03 AMreport abuse
A Little Late Clark
Predicting the Starbuck's era and the era of ignoring guilty pleasures is over now is akin to predicting the Titanic is going down as the water spills onto the deck. If you want to make a prediction, how about predicting how long it will take before we return to our old ways again after the economic slowdown/recession levels off and the economy begins to build again.
By Tanya @ 07/02/08 09:47:36 PMreport abuse
"So much for treating their employees well"
"Now Starbucks is closing around 600 stores and laying off 12,000 people. So much for treating their employees well!"

They are giving each employee a severance package. Further, under the circumstances, I can't imagine that they could take any course of action. It isn't a matter of treating employees well when the company is in such dire straits.
By Tom @ 07/02/08 04:45:39 PMreport abuse

starbucks coffee is not $5 !!!!!!!!!!

i pay less that two bucks for a medium cup of coffee at starbucks. the cost at dd is only a few cents less. but the coffee at dd is weak. i can't even drink a cup...its like brown water. many people like that, but i prefer my coffee to have a punch and keep me going. the employee's at starbucks are much more friendly that at dd where they hardly speak enough english to do their jobs. give me starbucks over dd any day. those people who think that a cup of starbucks coffee is $5 have probably never been in the store or tasted the coffee. 1.98 for a medium and that is including my 7% sales tax! its 1.70 somthing at dd and McD for brown water.

By jenna @ 11/18/08 09:51:49 AMreport abuse

It's not $5.00

I'm not sure where this urban myth of $5.00 cups of coffee at Starbucks got started. You can - and always have been able to - buy a cup of brewed coffee for $1.60 a cup (it used to be even less til last year). That's only about 20 cents more than McDonald's - in a much nicer atmosphere, for a much better product. If you're drinking a large fancy drink with lots of expensive add-ins, it costs more - but at that point, it's no longer "a cup of coffee". I don't understand why people have started to hate Starbucks. This is a company that pays well, provides benefits for even part-time employees, tries to do business in a way good for the environment, and sells a harmless product people want to buy. Why all this happiness to see a good company struggling??

By Sydney @ 07/07/08 08:12:10 PMreport abuse

Yuppie-kay-yey

$5 Dollars coffee? Why? It doesn't even taste good! Snobs drink it! Time to close that store! Move on!

By Andrew R. @ 07/07/08 08:25:43 AMreport abuse

coffee

if you ask me it was bad coffee for the price, any price there is better coffee out there that you don't have to pay six dollar's a cup for so if they want to keep the coffee drinking public lower the price or fold up. like i said there coffee is not worth the price.

By james withrow @ 07/06/08 02:26:34 PMreport abuse

The "Experience" is lacking IMO

Starbucks might be OK if it weren't staffed by PPPs -- pale, pierced, people. I'm so sick of the 'tudes offered by these emo types who seem to think "no problem" or a blank stare is a good substitute for "thank you". I've started to avoid businesses who hire these types and maybe I'm not alone.

By Marty @ 07/05/08 01:29:36 PMreport abuse

Starbucks

Yes, Starbucks is going to have to cut several hundred jobs. But, many of their employees will be able to work at other locations. So much for treating their employees "well" Clark.

By Smedley @ 07/05/08 11:19:26 AMreport abuse

Starbucks coffee

I lived in Europe for 5 years, three of them in Italy where I first experienced cappuccino for as little as 35 cents a cup. By the time I left Italy in late 2002 it averaged about $1.00 a cup in a ceramic cup served on a saucer with a metal spoon in various quaint mom & pop shops. The experience is something I remember to this day not because of the setting but because the coffee was so good. The coffee at Starbucks is OK, but not great, and certainly not at $5.00 in a paper cup. Starbucks learned an old marketing trick, 'sell the sizzle, not the steak'. Most Americans who think this is great coffee bought the sizzle.

By J.J. @ 07/04/08 11:08:50 PMreport abuse

Starbuck's

yes, they were to aggressive and thought they can beat Dunkin Donuts, which I feel its a better coffee, They got to big and lost.

By Jose @ 07/04/08 07:43:42 PMreport abuse

Harry Truman

Harry made tough decisions and lived with the consequences. Nobody ever accused him of personally profiting from what he did. He lived in the same house he and Bess bought when he was a habadasher after serving in World War I. And unlike too many leaders today, he served with distinction on the battlefield.
A real man, unlike the spoiled rich kid we have now.
I tried some Starbucks Coffee and liked it, but there is no way I'm spending $5 a cup for coffee, no matter how good it tastes.

By Brian @ 07/04/08 12:29:39 AMreport abuse

Harry Truman? LOL

FYI, President Truman left office with an approval rating of 23%, lower even than GWB. History has been kinder to him and his legacy than the voting public and the Press in 1952.

http://ask.yahoo.com/20051011.html

By Ed M @ 07/03/08 10:22:56 PMreport abuse

Starbuck's Era Ends

It is my position that Starbucks provided an experience.

By Corro'll Driskell @ 07/03/08 10:00:19 PMreport abuse

Not His Fault

We keep hearing how nothing is Bush's fault. There is nothing he can do about the economy, the price of gas, the banking collapse, and on and on passing the buck on every issue. If you believe there is nothing he can do and these calamities are not his fault, I have a bridge for sale!

Harry Truman had a sign on his desk that read "The buck stops here." President Truman was a man who accepted the responsibility that came with the office in which he was ELECTED to serve. "Give-em-hell Harry" was also not afraid to nuke the enemy who attacked our country. On the other hand, "Let-them-eat-cake George" is more like Herbert Hoover who did nothing.

By PJ @ 07/03/08 04:53:36 PMreport abuse

Saving on Gas

Hi, Clark I just read about this new company called MyGallons.com. This is where you can pre-purchase your gas. I just wanted to know if it was any good. Thanks

By M. Strickland @ 07/03/08 03:30:34 PMreport abuse

Recession, depression, correction?

"Something has shifted in the economy, but we've seen it come roaring back before."

We are in the initial stages of an economic meltdown not seen in this country since the 19th century. Our banking system is burdened by debt and leveraged hedges so large that they will be impossible to honor without destroying the U.S. dollar. Starbucks is the canary in the coal mine, and prudent investors and savers should not ignore the clear warning signal.

By Jeremy @ 07/03/08 11:56:04 AMreport abuse

RE: Bush Depression

i shake my head at those of you that call the current economic times "Bush Depression." does the president really have the power to put money in your wallet or bring down the price of gas? NO. the liberal controlled congress has blocked the U.S. from drilling oil offshore. so much for nanci pelosi keeping her word... when she became speaker of the house she "promised" that she would lower gas prices (back then gas was in the $2.90s).

By Bright One @ 07/03/08 11:16:26 AMreport abuse

Bush Depression?

Someone needs to consult Dr. Webster to determine the definition of "Depression." This is what I would call a Market Correction, not the end of an era. Something has shifted in the economy, but we've seen it come roaring back before.

By Kinger @ 07/03/08 10:45:51 AMreport abuse

They are drug dealers

Last Sunday in the AJC, they had a card you can use to get one free cup of coffee a day until the 14th. They are trying to get people addicted again and hoping the sales pick up after 2 weeks of free coffee.

By Logical1 @ 07/03/08 09:23:37 AMreport abuse

They are selling five dollar cups of coffee during the Bush Depression and can't imaging why people are not flocking there to buy it... common sense!

By PJ @ 07/03/08 05:17:03 AMreport abuse

A Little Late Clark

Predicting the Starbuck's era and the era of ignoring guilty pleasures is over now is akin to predicting the Titanic is going down as the water spills onto the deck. If you want to make a prediction, how about predicting how long it will take before we return to our old ways again after the economic slowdown/recession levels off and the economy begins to build again.

By Tanya @ 07/02/08 09:47:36 PMreport abuse

"So much for treating their employees well"

"Now Starbucks is closing around 600 stores and laying off 12,000 people. So much for treating their employees well!"

They are giving each employee a severance package. Further, under the circumstances, I can't imagine that they could take any course of action. It isn't a matter of treating employees well when the company is in such dire straits.

By Tom @ 07/02/08 04:45:39 PMreport abuse

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Jul 02, 2008 -- Clark predicts the end of the Starbucks era?

What others are saying