by Mj Ferruzza

Created on: July 08, 2008

Starbucks was marketing genius. Take a morning necessity for
more than half of all of us, incorporate different, but
original flavors and sizes, then sell it in an establishment
that evokes the coolness of the Pacific Northwest and you have
America's largest coffee franchise.
Starbucks ("Star" for reaching for the stars and "Buck" for the
money they were to make)grew so fast in popularity and store

locations that it almost led itself into overkill. Some of these
popular coffehouses were located only a few blocks apart, more
so in the bigger cities.
Starbucks was selling more than just an expensive cup of coffee
in a trademark cup. They were selling baked goods, recorded music
but most of all the essence of yuppie upscale hipness.
It was a reflection of the days when the alternative bohemian types
would like to hang out and discuss the problems of the day over
a never ending single cup of coffee.
It also had the feel of being just another corporate establishment
selling the individualist lifestyle. The same type of individualist
that got Jeep develop Grand Cherokee or Liberty SUVs for their rugged
urban driving in order to get the kids to the soccer field.
America loves a winner. The growing number of these popular franchises
were welcomed with open arms in some communities. America hates a show
off. By saturating many communities with their stores, they were killing
business for smaller Mom & Pop coffee shops. America loves an underdog.
Dunkin Donuts was all but a lifeless franchise until they revamped in the
Starbucks mold (upscale coffee and popular familiar baked goods) now have
provided a challenge for business. This turned the tide for Starbucks.
When one Dunkin Donuts popped up, it seemed one Starbucks was losing business.
Then the economy took a downturn and the novelty of an expensive flavored
cup of coffee started to wane. Starbucks had to cut costs. It was the
corporate thing. And just to prove how easy it is to close a Starbucks
as it is to open one, realize that there will be no mass gatherings in front
of any of their stores by young yuppie bohemians holding signs and screaming
"Save our Starbucks". They are too busy ordering a large (or Tall) at the
Dunkin Donuts or another Starbucks down the block and around the corner.
Closing stores puts a squeeze on employees, but is the perfect blend for
shareholders and the Starbucks bottom line.
Starbucks will survive and probably in 5 - 10 years it will have a massive
revival even reopening 600 more stores. Americans love revisiting their own past.
Corporate or otherwise, Starbucks is Americana and will live to propagate for
a long, long time. Now if Stuckey's or Howard Johnson's could find a way to
market a $5 cup of coffee.

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