Starbucks Stumbles... and the Brave Grab Market Share

When times are good and money is flowing... inefficiencies in business are masked.

Four weeks ago Starbucks announced the closure of 600 of its US stores. That's 12,000 or 7% of it's workforce. Now we hear 61 of its 85 Australian shops will close. A further 685 jobs.

All these closures... just when it looked like all you needed to do was open a coffee shop and profit was your right.

However...
Higher interest rates.
Higher petrol prices.
Higher food prices.

All add up to one thing...  less disposable income.

Big purchases are put off. Small purchases are cut.

Goods and services with a short product purchase cycle will see faster growth from advertising and good customer experience. But will experience faster downturns when customers have a bad experience or when the customers purse strings tighten.

In times of less disposable income... markets shrink...  fat, lazy, inefficient businesses cut back on marketing. Some close.

For business owners, now is a time for efficiency and optimization.

While others stumble, now is a time to grab market share.

PS. If your currently weekly sales are on par or ahead of this time last year, give yourself a big pat on the back. But don't rest on your laurels... there is more work to do.

PPS. Your marketing is a great place to start optimizing. Do you need help?