Four (or Five!) Reasons Why

….Starbucks is Losing its Mojo

1. There’s good coffee everywhere these days. This is a stark contrast to the early days of Starbucks when people were craving high-quality java after being forced to drink terrible coffee such as Sanka and Maxwell House for so long. Starbucks was able to storm onto the scene by showing consumers there was better coffee out there, even if it meant they had to pay through the nose for the privilege. Now, you can even get a good cuppa job at McDonald’s of all places!

2. Starbucks is expensive, especially if you’re one of those coffee snobs into fancy drinks such as a decaf, low-fat, misto, cappuccino with soy milk…or something like that. With the economic landscape getting tougher, people may start to buckle down on some of their perks, so don’t be surprised if the $4 cup of coffee gets the axe. Who knows, if times get really tough, Sanka might start looking good again.

3. There’s a Starbucks everywhere as the company seeks to make sure its competitors don’t get a solid foothold. In the process, Starbucks has become a multi-national conglomerate as opposed to a speciality retailer. In other words, Starbucks has become very mainstream, which is far from cool.

4. Going into a Starbucks can be downright confusing these days. Aside from a growing variety of coffees, you can purchase tea, CDs, food, coffee-makers, mugs, newspapers, and the list goes on. So, what is Starbucks now? A coffee retailer or a retailer that sells coffee-related merchandise as well as coffee?

5. Starbucks’ stock has been a terrible performer. Over the past year, it has dropped by more than 50% to about $14. It’s difficult to get excited about a company with flat sales and more competition.

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