Starbucks to close many of its Australian branches
According to a report published on the Internet portal, epochtimes.de, the US coffee shop chain, Starbucks, is intending to close down more than two thirds of its stores in Australia. Such a move would lead to almost 700 people losing their jobs.
The reason for this decision is that the branches have not been meeting their targets. Similar actions in other countries outside the USA have not been planned. At the beginning of July, Starbucks had announced that it was looking to shut down 600 branches in the USA. Following the rapid expansion of the chain, it would appear that it has reached its limits although, epochtimes.de reports, the declining economy in the States has also had a negative effect on the chain’s business results.
Starbucks is, it says, the world’s leading retailer, roaster and brand of specialty coffee with over 16,000 branches. 7,200 Starbucks branches in the USA are run by the company itself as well as around 1,860 abroad. The other businesses are operated by franchisees. The company’s plan for the coming business year is to open up just under 200 new businesses – half the original target. It has not, however, altered its expectations for 2010. (kbp)