This is a small story about a company that grew too fast. But it speaks to the larger economic crisis. People don't have the money to throw away on coffee that they used to -- and you can buy coffee, good coffee, for much less than Starbucks charges.
Starbucks fourth quarter profit drops 97 per cent on closure costs
NEW YORK - Fewer U.S. customers and venti-sized costs for closing poorly performing stores led to lower sales and profit in the fourth quarter at Starbucks Corp., the company said Monday.
Seattle-based Starbucks said profit fell 97 per cent to US$5.4 million, or a penny a share, from $158.5 million, or 21 cents per share, a year earlier. The coffee retailer earned 10 cents per share when the costs from closing about 600 stores in the U.S. and 61 locations in Australia are excluded.
Story here: http://ca.news.yahoo.com/s/capress/081110/business/starbucks_2
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