Starbucks will no longer sell...

If it's your morning routine to stop at Starbucks on the way to work and grab coffee and a breakfast sandwich, you're going to need a new routine. In a bid to win back customers, Starbucks will no longer sell hot breakfast sandwiches come this fall. It's a strange financial move since the sandwiches boost a typical store's annual revenue by $35,000. Pulling egg, cheese and bacon sandwiches off the menu is going to mean less profit for the stores.

Chairman and Chief Executive Howard Schultz told The Associated Press that the move is part of a series of big changes that will pay off over time. "The decision and the courage it takes to remove something when there's pressure on the business--like the sandwiches--is emblematic that we're going to build for the long-term and get back to the roots and the core of our heritage, which is the leading roaster of specialty coffee in the world," Schultz told AP. The Seattle-based company released its financial results for the first fiscal quarter and they're weren't good. Profit rose just 2 percent, while sales at U.S. stores that have been open for at least 13 months fell 1 percent. Traffic dropped 3 percent--for the second consecutive quarter.

But Starbucks has a plan, and that means you don't get to eat breakfast there. In addition to ditching those sandwiches, the company will open 425 fewer domestic stores than planned. Schultz wouldn't reveal the details, but said he has "five bold innovations" he will disclose to shareholders at the annual meeting in Seattle on March 19. The company is currently testing in some Settle stores $1 extra-small cups of drip coffee with free refills, a response to the hard economic times many people are experiencing.

source: Netscape.com


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