Starbucks Turnaround in Full Swing

It seems like things are improving at Starbucks. The coffee giant posted first-quarter earnings of $241.5 million, and a same-store sales gain of 4%, it’s first since 2008.

Executives attributed the improvement, in part, to its new Via instant coffee. Starbucks also cut costs and closed stores in the last year and a half.

And while all of this is taking place, the company is now testing its first line of neighborhood-focused stores in its hometown of Seattle. CEO Howard Schultz says the company is behaving more like a startup again, and stores are now focused more to cater to customers regionally rather than taking a cookie-cutter approach.

Have you noticed a change at your local Starbucks, or does it seem like business as usual?

ALSO: Crabtree & Evelyn Bankruptcy Emergence an Unusual Retail Rebound


3 Responses to “Starbucks Turnaround in Full Swing”

  1. 1 zaradzki January 21, 2010 at 7:27 am

    Interestingly I have read many posts over the past days about the price hike at Starbucks US but today in Paris my local one announced price cuts. Ok French prices are much higher than the US one but the two moves are leading to convergence.


  2. 2 needtoimprove January 21, 2010 at 11:56 am

    Prices have increased, but the stores feel more and more like a Carl’s Jr. What happend to the days when they served your coffee in a real coffee cup and had plenty of reading material handy and comfortable chairs. The chairs they through in now are just sticks w/ terrible fabric drapped over. Nothing cozy and warm about that. I like good coffee, but hate the environment. Truthfully I only go to use the wi fi for work and think of buying my cup of coffee entitles me to a desk. I’m renting office space.

  3. 3 Tahitijack January 22, 2010 at 11:35 am

    My SBUX stock is now out of the “don’t look” pile. While I’m happy about the progress made in the last 12 months, they need to avoid going back to the old new store development program of fast paced, over-laping stores, saturation mode that played a role in their troubles. If they can restrain themselves and stay on a steady slow growth path, with quality locations and carefully crafted lease agreements they will joing others in the recovery.

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