In July 2008, when I first wrote about Starbucks closing 600 stores, I said to expect more store closings and a long, slow decline for a once highly respected brand (see original article). Well, here I am reading the New York Times and discovering another 300 stores are closing, which will affect 6,000 employees, with another 700 employees getting laid off elsewhere.

Of course a big part of their problem is what’s ailing everyone: the economy. But more than that, Starbucks had damaged its reputation as an authentic coffee house by featuring a bloated menu of over-the-top high-calorie, sugary drinks, along with some smelly food offerings that destroyed ambiance. Their raison d’etre had been lost.

Has Starbucks hit the bottom? No, it’s only going to get worse. In March, Starbucks will introduce breakfast combination meals to “challenge misconceptions about affordability,” according to Schultz. In other words, “Would you like an egg muffin with that vente caramel latte?” Yuk.

Perhaps a name change is in order, to “McStarbucks.” Although I think the market segment Starbucks is going after is already well serviced. And so the decline continues.