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Starbucks' 4Q Profit Down 97%, Same-Store Sales Drop 8%
It looks like I'm not alone in moving on from Starbucks. The food there is terrible and the stores are really starting to look shoddy. Personally I've taken my coffee drinking business (which, I admit is substantial) to a local place called Artigiano.
CHICAGO (AdAge.com) -- Restructuring costs took a bite out of Starbucks' fiscal fourth-quarter and full-year profits, the retailer reported today. Fourth-quarter earnings plummeted 97%, to $5 million, from $159 million in the year-ago period. The figure includes a $105 million charge for restructuring, and other costs associated with the company's turnaround plan. Full-year earnings also fell, 53%, to $316 million, from $673 million last year.
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Most RecentMost Recommended Comments (23)
at 11:42 on November 11th, 2008
Both myself and my family used to be big Starbucks lovers. We got sick of the attitude of the servers and the quality of the coffee. We have moved on to a local place called Palermo. Same prices but the people are friendlier and the coffee is great. Oh and the environment is much nicer,
at 11:54 on November 11th, 2008
Purely anecdotally, the service at our local Starbucks has gone downhill in the past couple of months as new staff have come and gone. A 10-minute wait for a cappuccino (and not a complicated venti sugar-free extra hot decaf pumpkin spiced latte, or whatever!) in a store with no line-up seems a bit excessive. And there I go sounding like a spoiled West Coast coffee drinker. Guilty as charged.
at 12:09 on November 11th, 2008
Seems like the whole "Starbucks" magic is fading away. Spent 20 minutes in line in Trump Builidng waiting for my coffee, and the stuff were very rude. There was a pregnant woman, and they refused to give a chair to her. However coffee is still delicious.
forzadagro has contributed a photo to this story.
at 12:09 on November 11th, 2008
I also got sick of the 'tude of the staff. Give them an Italian name (barrista?) and they think they are something more than minimum wage coffee pimps. And NO I don't want a Venti....I want a LARGE! And it's a Double Espresso not a Dopio....I think the staff are smoking too much Dopio!
at 12:43 on November 11th, 2008
I have always preferred small independent coffee shops over Starbucks and the other chains.
However I find bad customer service in most businesses of any kind I go into not just Starbucks.
Since Starbucks has grown so big it would be harder to find the same level of help all the time. Even more so since the last CEO (And stock holders) pushed expansion and never ending growing profits over product and service quality.
I would imagine the stress for someone working at Starbucks would be high with things seeming to be so shaky.
The point of restructuring is to turn things around the transition will be rocky as is any big change. Starbucks has a strong product that will rebound once they refind their place in the market.
Hmm..... has contributed a photo to this story.
at 12:41 on November 11th, 2008
Here in Europe, Starbucks is still a good brand. The coffee tastes good, as well as the food.
I hope for Starbucks to find back to its original path.
at 12:46 on November 11th, 2008
Still great coffee, wishing Starbucks to read their books and get back on service and quality.
tfelix has contributed a photo to this story.
at 13:44 on November 11th, 2008
Patrons and locals as well as curious tourists still flock at the first established Starbucks store located at Seattle's Pike Market though. But it's sad to hear that Starbucks is loosing its grip on coffee lovers.
J.Quiachon has contributed a photo to this story.
at 13:56 on November 11th, 2008
giu7ia has contributed a photo to this story.
at 14:13 on November 11th, 2008
For many years, Starbucks was numa1 in Kuwait, i mean its every where!
there is a mall in Kuwait that have like 5 or so Starbucks branches and they are always crowded!
i think its still number 1 in my country, but personally i prefer other cafe's like Caribou Coffee and many others.
and i agree that starbucks food terrible.
at 17:14 on November 11th, 2008
Well, I can't say that it bothers me that Starbucks is losing profit! I tend to support a local coffee shop and any other coffee place that is Canadian owned because I want to support jobs and economic growth for Canadians.
at 17:28 on November 11th, 2008
I <3 Starbucks
emzo. has contributed a photo to this story.
at 17:57 on November 11th, 2008
Tim Perdue has contributed a photo to this story.
at 03:07 on November 12th, 2008
it's funny ,
I myself louv starbucks , their food seems delitious ,
though the coffe teast different from one store to another .
notwithstanding, the high price they charge for the most treival things
for example, orang juce in Saudi Arabia's Starbucks; costs about 15 Ryals = 5 dollars N' that's for the midum size !!
.
at 04:09 on November 12th, 2008
Starbucks is expending in Asia though and seems to do rather well here in Japan so far. I did have a chance to talk to a Starbucks Super Manager and he said that it may be a good lesson for Starbucks USA since they did get some what to arrogant in recent Years. This of course would be a Tokyo view point from about the Starbucks Losses in the USA.
at 04:13 on November 12th, 2008
Have a good time =) !!
ahmed.magh has contributed a photo to this story.
at 04:15 on November 12th, 2008
In a down economy, it makes sense that the $7 coffee will be the first luxury to get stripped away. I be they're selling more of the cheaper drinks to the continued customers, and fewer of the pricey drinks.
at 05:06 on November 12th, 2008
I'll have to admit that I haven't been a fan of their pastries and the like, but the new spinach wrap thing is pretty good, as well as the *perfect* oatmeal. Their regular coffee, I don't really care for, but their espresso-based confections are just Yum! Especially the ones at this time of year! I like that they have added value to their cards in getting you free milk and stuff (because I was getting irritated that they would *inconsistently* charge you extra for "milk" if you ordered your drink without ice), and that there is the new gold program which gives you 10% off. Now, if only they would add the feature that tracks my exact purchases.... I would like to know what drinks I ordered throughout the year! :)
at 15:00 on November 12th, 2008
Here in the UK, I think the opposite seems to be true. New Starbucks stores are opening quite regularly, they always seem to be busy and the staff are polite and enthusiastic.
at 08:13 on November 14th, 2008
Starbucks caramel hot chocolate is beaut
trigger finger10 has contributed a photo to this story.
at 03:34 on November 28th, 2008
.i personally love and adore starbucks.. and in any case, i am willing to help out in any chance to bring back their reputation in keeping their business much better.
at 11:22 on November 28th, 2008
The end is truly near when people "love and adore" corporations.
at 16:24 on December 9th, 2008
madre e hija un dia normal en starbucks
Muriel Pavez N ♥ has contributed a photo to this story.