UPDATE 2-Starbucks to cut more costs in tough economy

[Omaha Steve]

Source: Reuters

By Lisa Baertlein

NEW YORK, Dec 4 (Reuters) - Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) said on Thursday it would take new steps to save on costs and keep its fundamental strategy unchanged despite a U.S. recession, sending the coffee shop operator's shares up 8 percent.

Starbucks Chief Financial Officer Troy Alstead said at an investor meeting in New York on Thursday that he had found a way to save another $200 million by making in-store labor more efficient, managing waste and streamlining its supply chain.

Analysts gathered at the meeting had said they were looking for more clarity from Starbucks on plans to lower fixed costs and preserve profits as sales fall amid the biggest U.S. financial crisis since the Great Depression.

Starbucks is more focused than ever before on cutting costs "out of necessity," Alstead said.


Read more: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0452373920081204

[lifesbeautifulmagic]

1. yeah, let me tell you how they "streamlinied its supply chain"

they eliminated positions of long term employees, who had been there for years, who had made untold sacrifices (work first, family second) and then hired temp "contract" workers at half the salary with no benefits.

But hey, Howard had a nice little article on Huff Post a while back on corp responsibility. :sarcasm: :sarcasm:

[libnnc]

2. I bet they could save a ton of money by just cutting back

on all the crap trinkets and extra merchandise they sell in their stores. I've never, ever seen anyone buy a $18 coffee mug or a $200 brewer. People aren't doing that kind of impulse buying.

When I need to feed my addiction (yes, it is an addiction) I just want the shit man, not the accessories!