Members of the media may directly contact the following experts on this topic:
Dana Hyde (English and French)
Executive in Residence, Telfer School of Management
Hyde@telfer.uottawa.ca
Professor Hyde’s research and fields of expertise touch on corporate strategy and international business based on experience working with Canadian businesses and major, multinational corporations and SMEs.
"Starbucks has reported six straight quarters of declining same store sales, which is one of the most critical indicators in retail. For the past 18 months, on average sales have dropped in each store. Inflationary pressures have depressed demand for more expensive specialty coffees – customers’ switching to Tim Horton’s, for example -- putting further downward pressure on Starbucks sales.
In addition, US tariffs on key coffee-growing nations combined with a shortage of coffee beans have increased Starbucks’ raw materials costs.
Activist investors, who in September 2024 forced a change in CEO to former Chipotle CEO Brian Niccol, may be even more impatient for improvement in financial results. These store closures and employee layoffs in Ottawa and across Canada and the U.S. represent cost-cutting measures, together with ongoing layoffs of hundreds of employees at corporate headquarters."
David Gray (English and French)
Full Professor, School of Economics, Faculty of Social Sciences
dmgray@uOttawa.ca
Professor Gray's research interests include the fields of labor economics and labor market policy.
"Starbucks over expanded in an already stiff industry. Competitors are now striking back with similar, inexpensive products. People - even loyal customers - have also changed their coffee drinking habits; they spend less time in the brick and mortar store. They seem to be re-balancing their customers between drive though, mobile, and in person. And in the U.S. they are going to be zapped by Trump’s tariffs on coffee."