First Ever Loss of Starbucks

The largest coffee restaurant chain reported its first "ever" quarterly loss (net loss of $6.7 million) as a public company. Recently, it reported a plan of closing 600 stores in the U.S.

The chain, Starbucks, has been a big, big player and leader in coffee world. What is happening? Economy + over expansion + competitors? Economy is on a slower pace for nearly every business categories, mostly automobile, retail and others. Starbucks also has been over expanded with several branches not being able to support themselves. New competitors with cheaper coffee such as McDonald's or Dunkin' Donut are sharing the (coffee) cake.

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