Another sign of the struggling economy is Starbucks announcement that they are scaling back their new unit projections for the coming year. They don’t feel that current sales justify continuing with the new locations that they had planned.
Understand, coffee is a huge business. Worldwide it is the #1 beverage after water. Despite mixed health reports (caffeine is bad for you - caffeine good for you), coffee sales in the US remain fairly strong. Specialty coffee, however, is a luxury item, and those tend to get cut from the budget when times get tough.
In order ot try to boost sales, Starbucks is once again going to give the breakfast market a shot. The plan is to focus on proprietary baked goods and chilled items. If that works for them it will help to offset slumping beverage sales.
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