A Prime Example of Growing Too Fast and Doing Too Much

Implications: Starbucks has grown too fast, and in too many smaller markets. Evidence is reflected in an interstate location located nearby where they stopped building the site. This is a small town. Another example is in another small town nearby off the interstate, where there exists a free standing Starbucks. In the same shopping center inside a Kroger, there exists, you guessed it, a Starbucks. With McDonald's and others entering the coffee fray, it is no wonder that Starbucks began struggling. Growth had to slow down, nonperforming units had to be closed, and a refocussing on what made Starbucks so popular, their coffee, had to be initialized. It will take while, maybe a long time, for the chain to recover to where it was.

Analysis: Having been in the food business for over 30 years, it sometimes takes a while for a given chain to realize that something made it great. Instead of focusing on trying to do everything for everyone, concentrate on what you do best whether that is selling coffee, doughnuts, soup or whatever.