Why Starbucks Is Really Shutting Down Stores in New York
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Starbucks has shut down stores. You want to know why? Well, we’ll get into it here. Okay. This is out of New York because they’re having a collective freak out in New York City right now. Yeah. They actually just put, I mean, I can’t even believe this. This is odd. This is something that usually happens when a company goes bankrupt. They just shut the store down and put a sign in the window saying we’re closed. Yeah. Dozens of stores across New York City. And again, high profile.
all the landlords, what are we going to do? What are we going to do? And city officials, oh my God, you got to make sure you follow the rules and your employees have got to go find somewhere else to go. Now, you think it’s because of foot traffic? Nah, nah, I don’t think it’s due to foot traffic.
in New York? Part of it. That’s a part of it. You really want to know why Starbucks is cutting back? Have you taken a look at the price of coffee? Yeah, yeah, we have these things that are called tariffs. You might have heard them. You might have heard about tariffs.
and we don’t grow a hell of a lot of coffee here in the United States. Not to mention the fact that probably wouldn’t be very good. You need a certain type of climate for coffee and yeah, not here. Let’s just leave it at that. So anyway, your store called Starbucks and one of your biggest input costs is coffee.
You can’t run a coffee shop without bloody coffee for crying out loud. We all know this, right? And those prices just went through the roof. Now, again, I’m going to explain this in terms of business people just don’t understand. There comes a point in time where you say to yourself, is this worth it anymore? Is this worth it? Is it worth the effort having this business? Is it worth the effort?
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having this store. You take a look and you’re analyzing any business and you see what your costs are going to be. Now again, big hit as well. Big hit as well in New York City. I don’t even know some of these stores. They may actually be unionized Starbucks workers for all I know. That’s a major cost, okay? It’s not nearly as high as your coffee costs.
And when that goes to a certain point and you take a look at the numbers and you say, it ain’t worth it anymore.
It ain’t worth it anymore. It’s not worth it to have this store anymore. the funny thing is, them walking away from these leases, they still have to pay their lease. That’s how hard they are getting hit with these higher input costs. That they are willing to continue to pay their lease and just shut the store down. That’s how much they’re losing. The numbers don’t work anymore. I explain this.
people sometimes and they don’t get it. Like, I don’t understand it was a restaurant. This should happen in New York a lot. There’s that restaurant on Second Avenue. Man, it was packed all the time. It shut down. I don’t get it. You don’t get it. The lease is up. The lease is up and the landlord got greedy. The landlord said, well, you know what? You’re doing real well. I’m going to jack it up to a certain point in time. The owner of the restaurant says, you know what? Nah.
Nah, I can’t pass these costs on down to my customers. They’re not going to pay them. I’m not going to raise my prices that much. Even if I’m making some making money at the restaurant, is it worth the effort? No. So they shut down and maybe they move somewhere else. That’s the reality. How much? Starbucks caught me as expensive already. What are they going to start charging? $10 a cup?
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Ten bucks, actually that’s probably a neat idea. Is if they say, hey, you know what, you know these tariffs we’re going to have to, they put a little tariff costs on the thing and then they go to Chuck Schumer, know, Senator of State New York, Chuck, we need you to, we need you to start subsidizing coffee prices here for our clients. can’t afford them anymore. Again, this is what happens when the government gets involved in the free market. Lock’s Dog on ballstreet.com.
