"We're doing a very good job of starting to demystify the fact that
Starbucks coffee does not cost $4 as people are charging us with," says Howard Schultz, who resumed the CEO position early last year. He says that customers who are opting to take their java at
fast-food eateries such as McDonald's and Dunkin' Donuts "know that they are compromising and I know that's going to play well for us in the future."
Comparable sales fell by 8% during
Starbuck's second quarter, following last year's 9% drop, owing to a 5% decline in the number of customer visits and a 3% decline in average transactions, the company reports.
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