Follow the leader…

It’s a rule of following the leader, even if the leader is lost. Starbucks competitors are following in its foot steps.

After expanding rapidly and opening offices far and near, Starbucks is in the process of closing stores. The CEO, Howard Schultz said this is partly because the company grew too fast.

However, it’s interesting to see that Starbucks competitors are following in its steps. Dunkin donuts has laid down a plan to open 15,000 stores in 13 years. Now, it has opened its first store in China, 149 more to follow.

Is there a trend among these coffee companies?
In 1982, when Schultz began working at Starbucks as the director of marketing, the company only had three locations and was in the process of opening a fourth location. 26 years later, the company has more than 15,000 locations in 44 countries.

If Starbucks opened 15,000 stores in 26 years and Dunkin donuts plan to open 15,000 in 10 years, will the donuts company also face what Starbucks is facing now?

The new CEO for Dunkin donuts, Nigel Travis  seems to have only one thing in mind though, “It’s all about growth,” Travis said. “We’ve got a lot of contacts between us and we can take the two strong brands out to these contacts and expand across the world.”

Now that it’s closing stores, Starbucks expects to save  from $200 million to $210 million in fiscal 2009.
And because closing stores meaning cutting labor, the company also hope to save extra $200 million  by closing stores. Already more than 1,000 people have lost their jobs with this company.

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