Starbucks Closures. 300 Stores, 6700 Jobs - 2/3rds in the US. Business Down 69%

fc123

A_fiend_for_life wrote: »

I'm not an economist nor in business but given that some of the stores / franchises run at a loss they push other businesses out by keeping a large footprint as well as pushing up rents.

If local economies are to be sustainable there should be a proviso similar to supermarket limits imposed / suggested by the competition commissions report on supermarkets opening new stores within a certain distance of each other, the same should hold true for other chains.

When these chains retract it goes to show how much of a vacuum they leave behind along with the profits that have been hoovered out of local economies during the boom years.

Both local people and councils lose out on this come the bubble bursting. So it would seem sustainable planning would benefit all.

We seem to have a strange relationship with these people that don't stick around.

Sorry gone off topic a bit. Does this sound like a rant? It's not supposed to.

Stay around Fiend for life.....we need more anti corp types on this board.
I feel like I am the crazy woman...all on my own...and then I doubt my own views.

Subman_2

Just a quick Q...Why did you take on a franchise when you could have set up an original, and, dare I say, better baguette shop from scratch?
It wouldn't have been more expensive.

A number of reasons, some you may disagree with, some you may not.

1. Easier to obtain funding. My personal circumstances make it hard to obtain a bank loan without a very solid business plan. A tried and tested franchise model is very attractive for banks to lend to.

2. I wanted to tap into a business with a huge marketing budget and a great team of people that look after it, in addition to being a huge brand anyway. This draws people to my business without me having to put in any additional effort and makes expansion far easier than as an independent.

3. The groundwork for the business was done for me. I don't have to source products, draw up menus, find equipment suppliers etc etc. I have a great supply network already set up to serve me.

4. I love the Subway product and always have done. Sure, I can make great sandwiches at home etc, but I know that I cannot produce a more appealing product than Subway.

5. Having the power of a brand behind me helps the business through tough times. Right now is a perfect example, where others have struggled with rising food costs, we have a huge franchisee buying co-op that sources our products and have managed to stave off any increases due to the way we buy currency. Not possible as an independant.

Cleaver

Subman wrote: »

4. I love the Subway product and always have done. Sure, I can make great sandwiches at home etc, but I know that I cannot produce a more appealing product than Subway.

You make a very convincing argument but that, my friend, is complete and utter rubbish.

You honestly think you can't make a nicer sandwich than Subway? You've either never had a sandwich anywhere else or you're a liar.

manic_saver

I thought this thread was about starbucks not SUBWAY...some people are getting a little side tracked.

Been in starbucks on a number of occasions but never really liked the place, ok coffee, ok service, depending on who is serving you. A little bit of a let down when they ask you if your sitting in and that will cost you more sir...for what? eating a muffin and having some cofffee, your going to charge me more for sitting on my !!!! :rotfl:...wait a minute...the last time i sat down the table was full of crumbs, two trays, cups, and plates...and who was there to clean it up NO ONE?

It did take a good 5mins before the cleaner came round and took away the stuff...whats the point of paying extra and you don't get the service thats required. I will be happy that their will be less of them around.

Cleaver

fc123 wrote: »

Thing is Cleaver, my brother is a bit well known (musician/DJ/producer bla bla), OH best mate is very well known, and I hang out (in Real Life Land) with very ''cooool'' musicy types.

Erm, Brighton, isn't it? Must be Mr Cook?

I like your explanation by the way, but still not having the Westlife thing.

Subman_2

You honestly think you can't make a nicer sandwich than Subway? You've either never had a sandwich anywhere else or you're a liar.

Purely subjective.

I can make a nicer sandwich than Subway, but I cannot create a better product.

lynzpower

Subman wrote: »

Purely subjective.

I can make a nicer sandwich than Subway, but I cannot create a better product.

:rotfl: your on the wrong site mate !! :rotfl:

Cleaver

Subman wrote: »

Purely subjective.

I can make a nicer sandwich than Subway, but I cannot create a better product.

But of course you can. For example, I was in Paris last year and found this little sandwich shop owned by this old, mental couple who made the whole experience worth the money alone. But behind the counter they had all the aged meats hanging up. And they didn't bake their own bread, but were next door to a beautiful baker and had a business arrangement with them. So you could watch them baking the bread next door and then the baguettes would be passed through. The old guy would find out what meat you wanted and would take the massive, aged, beautiful joint over to one of those great, old slicing machines and cut it straight off. I had an aged ham with stunning french cheese on a still warm baguette. The whole 'product' was amazing because it was real, cared for, authentic, amazing tastes. I wasn't being branded to, I wasn't asked to enjoy the 'product'.

Trust me, it was better than a subway sandwich.

And you could do that too, if you cared about the product. But you've already stated in a post why you bought the business and it was all about branding, and supplies, and security. Which is fine. But don't then bullsh*t that your product is the best out there when it's clearly cr*p.

Sorry, you can probably tell I'm a bit passionate about stuff like this.

fc123

Subman wrote: »

A number of reasons, some you may disagree with, some you may not.

1. Easier to obtain funding. My personal circumstances make it hard to obtain a bank loan without a very solid business plan. A tried and tested franchise model is very attractive for banks to lend to.

2. I wanted to tap into a business with a huge marketing budget and a great team of people that look after it, in addition to being a huge brand anyway. This draws people to my business without me having to put in any additional effort and makes expansion far easier than as an independent.

3. The groundwork for the business was done for me. I don't have to source products, draw up menus, find equipment suppliers etc etc. I have a great supply network already set up to serve me.

4. I love the Subway product and always have done. Sure, I can make great sandwiches at home etc, but I know that I cannot produce a more appealing product than Subway.

5. Having the power of a brand behind me helps the business through tough times. Right now is a perfect example, where others have struggled with rising food costs, we have a huge franchisee buying co-op that sources our products and have managed to stave off any increases due to the way we buy currency. Not possible as an independant.

I'm sorry Subman, but this doesn't come over to me as something written by a hardworking, semi entrepreneurial, franchisee.
Sniffs of corporate spin...or you C + P'ed it off some Subway literature you have on file.

Power of The Brand........True brand innovators never talk of The Power of The Brand' as it doesn't work like that.

Go on, fess up, we are nice, reasonable types here and a debate would be quite interesting.

fc123

Cleaver wrote: »

Erm, Brighton, isn't it? Must be Mr Cook?

I like your explanation by the way, but still not having the Westlife thing.

Nope, coooler than him (they cross over)...but Zoe shops with us.

ETA I am SE London girl and Brick Lane based too.