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Starbucks scratches sandwiches
by Nick Roskelly
February 1, 2008



So, by fall 2008, Starbucks won’t serve sandwiches anymore.

Wow. Now a coffee shop is just a coffee shop. No more wonky stacks of bread, meat, eggs and cheese to microwave. No more hard knobs of croissant to tear and chew like a hyena clenching and pulling at wild boar entrails.


After the company released its financial results for the first fiscal quarter, Howard Schultz, chairman and chief executive told The Associated Press: "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.


Here’s something kind of cool: Starbucks is going to slow growth in the United States by opening up fewer stores. Schultz said the slowdown in U.S. growth will allow the company to make better use of its resources.


Slow growth? Isn’t that supposed to make stockholders twitch? Aren’t they just as impatient as Starbucks coffee drinkers who tap the counter while a barista foams their skim latte?


I think it’s great that Starbucks sees slow growth and a more specified business strategy − coffee, not sandwiches − as the smart way toward future success.


New stuff is coming, too. The company has been testing $1 extra-small cups of drip coffee with free refills in some Seattle stores, which it is doing to respond to the economic pressures many of its customers are facing. Some analysts say it could draw in new customers and drive up sales if they decide to upgrade to a more expensive drink.


Does all this mean that McDonald’s will call off its gourmet coffee shtick?




Nick Roskelly

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