The queues do not seem to be getting any shorter

Jul 30 2008 by Andrew Hebden, The Journal

IF we are witnessing the death throes of the cappuccino years – as the recent era of credit-fuelled spending has been dubbed – the demise of Starbucks may provide the subject of an appropriate epitaph.

Yesterday, the coffee conglomerate announced it was, as part of a “geographically-focused reorganisation”, shutting 61 of its 84 stores in Australia within five days.

Following quickly on the back of the decision to shut down 600 outlets in America, it would seem the edict from Seattle reflected the trend of consumers tightening their belts and the price of coffee beans soaring.

And yet there was a clear indication from the company’s chairman yesterday that the problems Starbucks has been experiencing in the States and Down Under are peculiar to those markets. Howard Schultz insisted that the company’s performance in other international markets was “strong” and the company would be focusing in those areas going forward.

For those of us who once scoffed at the thought of Northern folk ever splashing out £3.95 on an espresso macchiato, the suggestion we are going to remain resolutely committed to our continental caffeine treats even in these troubled times is difficult to fathom.

And I can’t help but notice the queues at the Starbucks counters scattered all over Newcastle don’t seem to be getting much shorter as the credit crunch bites. Before we know it, the Save Our Starbucks campaign recently launched in the States will have a North East branch.

Confusingly, it seems we are not turning our backs on this great symbol of modern American culture but instead one that dates back to 1879, the date when Frank Woolworth opened his first store in Pennsylvania. Yesterday heralded the latest nail being hammered into the coffin of that once proud name of the high street that has now been reduced to a laughing stock (unless you’re one of its beleaguered shareholders, of course). Woolworths – clearly incapable of addressing the twin challenges of the online retailers and the juggernaut supermarkets – is now blaming bad weather for hitting sales of outdoor furniture.

If one of these two famous American names is to survive into this brave new world, I know which one my money would be on (if I have any change from my mocha valencia).