July 8th, 2009
10:00 PM GMT
Share this on:

Today, the coffee shop where I bought my afternoon latte and muffin went out of business. Coffee Republic wasn't the best in the world but it was conveniently across the street. And the staff often double stamped my loyalty card!

The end was swift. Some colleagues had even bought their breakfast and lunch there. Then the sign went up saying it was in administration and that branch was closed. I could see through the window the staff taking it all in. The food counters still had muffins, cakes and sandwiches for sale.

So why am I bringing this to your attention? Because The IMF, the European Union, the US Treasury – just about anyone who studies these things – is now saying things will get better next year. Some are more optimistc than others.

But the reality is the improvement will be slow and painstaking. And there are many more Coffee Republics, clothing, candy, grocery – you name it – stores that will fail.

The stock market's sharp post-March rally was a cruel deception. It led so many to believe this is over. It was an enthusiastic bout of nonsense, as I suspect this 2nd quarter earning season just starting, will show.

As for my afternoon shot of coffee and a muffin? Well there are two Starbucks just about within spitting distance of each other ... and a variety of other coffee shops.

In a recession as long and deep as this one only the strongest companies, and those that have the best products and really give the customer what they want, stand any chance of suriving. And even that is not a certainty as Coffee Republic proved.

Who is next?



soundoff (12 Responses)
  1. Rene Fernandez

    Imagine how it is in the less developed countries, namely South America or Africa! This recession is going to last longer than previously thought. That´s for sure... and the effects will be disastrous for everybody.

    July 8, 2009 at 10:15 pm |
  2. Liz

    some of my favorite businesses went under or had to move to a town where it's cheaper to do business.

    it's sad to see a longtime favorite close, especially when there's no warning.

    i'm also hoping things will get better and soon but i know that it'll take longer than the feds let on.

    July 8, 2009 at 10:16 pm |
  3. Ebuka Obi-Uchendu

    A little spot, just a few blocks from my house, where my brother and I mostly bought fish i tomato stew with 'agidi' (a local wrapped pudding made from corn) just closed shop; while restaurant chains like Chicken Republic (a huge fast food chain in Lagos, Nigeria) keeps opening up shop everywhere. There are two new ones just in my neighbourhood alone.
    The small businesses are the ones dying off while the big ones seem to thrive. Wonder why...

    July 8, 2009 at 10:16 pm |
  4. Aleksandar

    ... blackmail policy brings changes in the ownership of the reward to those who are working on their request ... who worked in the ... or who will work now !?

    Last week some make interview two times on therein plases. !?

    Who worked or who is strange to now and who decides !?

    July 8, 2009 at 10:17 pm |
  5. Blond Rocker

    Richarf,

    Tsk, tsk. Your loyalty card was double-stamped? Now your muffin shop is closed. Surely a case for some old-fashioned investigative journalism.

    Seriously, lots of stores are closing at a moments notice in Yorkville. Very sad. In the high end boutiques, all you see are the employees and a security guard.

    We need a 2nd stimulus for small biz and the unemployed. COBRA will expire for millions in US this year and add hundreds of thousands to health uninsured.

    2nd stimuus for people only – no political pork.

    BR
    NYC
    Silk Stocking District/ Upper East Side

    July 8, 2009 at 10:50 pm |
  6. Levon - Redondo Beach, CA

    My big fear is that by the time this recession is over - assuming it ever actually ends - we will be left only three or four large congloms selling us everything. Forget the stock market, let the corporates use their over-paid creative development departments to figurer out how to stay afloat. Help the economy, omit spending at big corporate businesses, support the mom-and-pop shops in your community. Keep the money circulating locally and it will become an elevator stronger and faster than Otis himself could ever possibly have imagined possible!

    July 8, 2009 at 11:08 pm |
  7. Manuel Vilhena

    It is a deep recession indeed. The gains that occurred in the stock markets after March have almost gone. I am nobody to know what is next. By the way, I would like to listen Todd Benjamin's point of view on your program. Cheers.

    July 9, 2009 at 6:32 am |
  8. Lee Smith (JhB, South Africa)

    The Simplicity and pleasure one finds in a Coffee & a muffin – the inventors of this 21st century breakfast are genius- really who needs the formal breakfast to start the day – I have wondered – who decided what was considered a "good breakfast food"and what should only be eaten at lunch and dinner ... I think i'll leave my food for thought right there....

    July 9, 2009 at 7:50 am |
  9. Shrinath

    Take to tea. Stiff upper lip and all that sort of thing, old chap.

    July 9, 2009 at 12:10 pm |
  10. requiredreading

    In central London, and around the world, the world is at your feet...take your pick. You have made it..you are famous. WHERE is next? Which planet is in your yearning?

    July 9, 2009 at 1:06 pm |
  11. Lyndon Sullivan @lindano on twitter

    Hi Richard, sorry to hear your muffin cafe has failed,but like you say its all to common now, in this global reseccion.I think gov ts.have got to talk up ,that we are coming out o f the "Crunch" to try & allay peoples fear of loosing their jobs, houses ,businesses,etc,Its the old saying "talk yourself into reseccion" "talk yourself out".When the reseccion ends we will all know, but until then, its all conjecture.Hopefully we will come out of reseccion sooner than later.Yours, Lyndon Sullivan.@lindano on Twitter.

    July 9, 2009 at 4:25 pm |
  12. mikeg

    hi Richard,
    love the insights but when are you going to podcast your nightly show. The segments are fine but for some of us viewers, we are still in the trenches when you broadcast.
    Sorry, i am a costa man, the starbucks americano might be 15 pence (approximately 23 cents) cheaper but the 'C' Suite is more smoother.

    July 13, 2009 at 5:58 pm |

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.

About Quest Means Business

Quest Means Business airs Monday to Friday, 1600 New York and 2100 London, and is hosted by Richard Quest.

 

 

 
 
Powered by WordPress.com VIP