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Commercial real estate brokers who work with Starbucks indicate that the company was so determined to meet its growth promises that it relaxed its standards for selecting new store locations. In some cases, Starbucks misjudged how close its stores could be to each other, leading to the decline in same-store sales. It also overextended itself in certain regions, and made site-selection decisions based on demographic projections that proved faulty.

Published July 3, 2008