The decline of the empire of Starbucks

Matthew Lynn says coffee is the pure brew of capitalism — as the credit crunch bites, no wonder the world’s most ubiquitous coffee-house chain is heading for trouble

In Christopher Guest’s witty canine mockumentary Best In Show, there is a line of dialogue that tells you everything you need to know about the world’s biggest coffee chain. ‘We met at Starbucks,’ says a woman character of her current romance. ‘Not the same Starbucks, but we saw each other at different Starbucks across the street from each other.’

Not many companies are so instantly recognisable that their brand names can be dropped straight into a movie without introduction. Nor are there many whose ubiquity could be the punchline for a gag. Indeed, there is probably only one: Starbucks.

But, quite possibly, not any more. For the first time since it was founded in Seattle in 1971, the company that introduced the world to the double mint mocha decaf skim latte is on the retreat.