• USA Today , Thursday, January 29, 2009 11:15 AM

Starbucks will close 300 more underperforming company-operated stores worldwide -- about 200 in the U.S. -- in addition to the nearly 700 it announced last year. Up to 6,000 positions could be eliminated. At the same time, it says it will open 140 stores -- 60 fewer than its previous target of 200.

Taking a cue from fast-food rivals, Bruce Horovitz reports, CEO Howard Schultz says the battered chain plans to roll out value breakfast deals in March that, for the first time, will bundle drinks and food at a discounted price. "We've heard those of you calling for more action," says Schultz.

Schultz has long maintained that customers were willing to pay a premium for the Starbucks "experience." But Wisco Research analyst Greg Schroeder says the company is doing what it has to do. "Starbucks will always be a good coffee company, but the competitive environment has changed permanently."

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