Come on gang, we’re not doing our part to help salvage those companies experiencing a financial downturn. Case in point, there was a time, (and not too long ago) when I’d drop a quick twenty bucks buying a round of Starbuck’s (NASDAQ SBUX) coffee for the gang at the office.

There was a certain feeling, having my very own barista custom blending each delightful cup of coffee to my order. Latte’ mocha, iced coffee, each one a delight to the nose and the taste buds.

Turn to today, and we are running the risk of losing our very own piece of the coffee world. If the trend continues, soon we will be relegated to buying coffee from one of those fast food joints.

I never thought that I’d ever see the day when my alter to the coffee god’s teetered on the edge of the crevice. But this may be the beginning of the end. Starbuck’s recorded a drop of 77% in income, when compared to last year.Starbuck’s continues to try and put a halt to its losses. It has closed stores, cut back on hours, reduced costs, and tried to improve customer service. Seemingly all to no avail.

So what happened to Starbuck’s? Chief among the issues facing the one-time coffee giant can be summed up by this evaluation by CEO Howard Schultz, who said Starbucks has become the “poster child for excess”… and he wants to shake that image.

Add to this the big push by McDonald’s (NYSE MCD) to cut directly into the Starbuck’s business plan. They rolled out the Starbuck’s look alike, with both fanfare and success. Now you had an option at half the cost. While other fast food outlets haven’t gone the route of McDonalds, both Burger King (NYSE BKC) and Wendy’s (NYSE WEN) are highlighting their early morning fare. Add to the mix the aggressive marketing of Dunkin’ Donuts offering their own special blend of coffee. Each one of these company’s cutting into the customer base of Starbuck’s.

Another challenge faced by Starbuck’s is location. As one of the kings of marketeering said “location, location, location.” The Starbuck’s plan was to place its coffee houses off the main thorough fares. Unlike its competitor, who has a store on almost every corner. Certainly the recent downturn in the economy has taken its toll as well. It simply seems extravagant to spend $3.95 or more for a cup of coffee.

In an effort to turn its financial woes around in fiscal 2009, Starbuck’s said it plans to add 20 net new stores to its global store base. It will close 425 company-operated stores in the U.S. and add 60 new international stores. It will open 65 new licensed stores in the U.S. and about 320 stores internationally.

Rest easy…Starbuck’s should be able to recover its past glories in the world of coffee. Will it be the king once again? Probably not, but it can remain a strong player in its niche.