Battered by a downfall in the economy, Starbucks said Wednesday that it would slow store growth, review pricing strategies and eliminate serving warm breakfast sandwiches in 2008.
The latter was an experiment that expanded to Orange and Los Angeles counties last year.
On Thursday, Starbucks said cafe drinkers didn’t like the smell of the sandwiches, which resembled Egg McMuffins. Here’s a statement from spokeswoman Bridget Baker:
“We have heard from our customers that the aroma of the sandwiches was interfering in their enjoyment of the coffeehouse experience. Customers will continue to enjoy warmed baked goods as our food team continues to add to our breakfast assortment. The highest priority for our food team is to develop the right offerings to complement our superior coffee and espresso beverages.”
The sandwiches will be out of stores by the end of the year. It’s unclear when they will be phased out in Orange Cou
Starbucks also cut its forecast for new U.S. store openings to 1,175 for fiscal 2008, from 1,600. Chief executive Howard Schultz also said the company is looking closely at how Starbucks can appeal to budget-conscious consumers.
“The fact is the consumer is in a recession,” Schultz said in a Wall Street Journal article.
Last week, the chain said it was testing a $1 drips in Seattle, as well as free refills. The company said there are no plans to expand that strategy to Southern California.
To read more about Starbucks’ financial earnings, click here.
Tell us: What should Starbucks do to increase foot traffic?
Also, are you disappointed that the warm breakfast sandwiches are going away?
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