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Starbucks short?

Just a thought, I want to see what everyone thinks. Obviously Starbucks is a widely successful business but is it overextended? With a potential recession on the horizon and many global supply chain problems I wonder how much this will affect Starbucks in the near future. I started thinking about it this morning when I took my dog on a walk and went approximately 1 mile and walked passed 3 separate Starbucks stores in Denver (1 stand alone, 1 in a target and 1 in a king soopers) I’ve heard before that they lose money on some of these kiosk operations.

Shipping costs have quadrupled on a lot of supply routes globally, so any drop in business could really affect the bottom line of Starbucks since vast majority of coffee is imported. Not to mention they would be very exposed for fixed location costs and the labor costs that are associated with. Would it be a stretch to imagine Starbucks shutting down a shit ton of these unnecessary stores and kiosks in the near future? Also im sure unionization could be a factor….

Submitted March 28, 2022 at 07:11PM by NewWorldEcon
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