While I would expend the effort to drive for a Wawa coffee, it’s pretty foolish to spend $4.50 or more for a Starbucks coffee that I can make at home for 50¢!
Sadly, the days of the wife sending her husband off to work in the morning with a lunchbox in his hand and breakfast already in his stomach are gone. Many, many businesses have grown up around that societal and economic change, with all sorts of chain and local stores selling coffee and a bagel — sesame bagel, dark toasted, with butter for me, thank you very much! — but I have to ask: has the market become oversaturated with some of these businesses?
Starbucks kind of broke the mold, with its waitresses now becoming ‘baristas,’ and its fancy shops and eight million different flavors and brews. The average prices that can be found on the internet vary wildly, but $4.50 seems to be about a midpoint.
Now, the company is having problems:
Why Starbucks is closing these six Philly locations
Starbucks has seen sales decline over six consecutive quarters.
by Erica Palan | Monday, September 29, 2025 | 12:44 PM EDT
Starbucks, the Seattle-based coffee powerhouse, announced last week that it would immediately shut down hundreds of underperforming stores and eliminate 900 corporate positions.
The cuts come as Starbucks has seen sales decline at stores open for at least a year for six consecutive quarters. The company’s shares have fallen about 12% in the past year.
The chain is grappling with rising labor costs, in addition to rising coffee prices.
We have twice previously reported on Starbucks and other coffeehouse workers efforts at unionization, and how OCF coffeehouse owner Ori Feibush simply closed his three Philadelphia coffee shops when the workers decided to unionize. The coffee shops were not profitable anyway, and were only a small part of the owner’s businesses, so he could afford to do it.
Checking Amazon, the Keurig which looks closest to ours, as pictured above, lists for $109. If a person is spending $4.50 every working morning, for coffee that costs me roughly 50¢ at home, he will have paid for that Keurig, and the coffee pods it uses, over the course of 27 workdays. That ignores having to physically stop at the local Starbucks, and whatever fuel he spent if it was out of the way on his way to work.
We also have a toaster, so I could toast a bagel at the same time! 🙂
Starbucks workers have been whining that the closures are the result of management fighting unionization:
Employees impacted by the store closures were notified Friday.
On Sunday, about 35 Starbucks union members gathered in front of the location at 16th and Walnut Streets in protest. They say they’re prepared to strike if the company doesn’t return to the bargaining table to negotiate higher wages, staffing levels, and healthcare benefits.
Over the last few years, Starbucks baristas in Philadelphia and beyond have taken efforts to improve worker protections. Some have been successful in establishing unions, while others have not. According to Starbucks Workers United, there are more than 12,000 unionized Starbucks baristas at more than 650 stores.
So, out of 18,734 Starbucks stores, only about 3.47% have been unionized. Management doubtlessly considers that a serious problem, but does it account for sales dropping for six consecutive quarters? Probably not, but it does point out the rather obvious problem of workers trying to unionize a shrinking company. It’s less expensive to shutter an economically underperforming store.
Three of the closed stores in Philadelphia — 1801 Spruce St., 1709 Chestnut St., and 1500 Market St. — are not unionized. Three others — 1900 Market St., 1128 Walnut St., and 490 N. Broad St — are unionized.
This is a matter of economic competition. If people are spending $4.50 every workday morning just for a cup of coffee they could Keurig themselves, that’s $1,080 in a 240-workday year. After four years of Bidenflation, there just might be a few families that decide that Starbucks every morning just isn’t that good an idea.
