Struggling Starbucks rolls out new brew

Starbucks is hoping its new fresh-brewed Pike Place Roast will boost sales.

Pike Place is a nostalgic brand for Starbucks and part of CEO Howard Schultz's plan to reconnect with the company's customers and return Starbucks to its roots. The new brew is named after Starbucks' original store-location in Seattle's famed fish market.

Starbucks aims to offer fresher coffee, and Pike Place will be freshly ground and brewed in smaller batches that hold for no more than 30 minutes, the company has said.

Starbucks is marketing the coffee in specially designed cups that use the company's original 1971 logo and brown trim around the white cup, instead of the usual green stripe.

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Great coffee is in the Clover

BY POLLY CAMPBELL | PCAMPBELL@ENQUIRER.COM

In the world of fine coffee, the hottest thing to come along since insulated coffeepots is the Clover coffee maker.

A gleaming stainless steel piece of fancy engineering from a small Seattle company, a Clover makes brewed coffee one cup at a time. A Clover machine costs $11,000. The Clover company could cost Starbucks several undisclosed millions.

Because of its expense, very few coffee shops have one. Because of the company's new owner, very few independent coffee shops ever will.

Starbucks will probably be installing the machines nationwide within a few years, and it is now testing them in Boston and other big cities. For now, there are only two Clover machines in Ohio, and one is at Rohs Street Cafe, the fair-trade-only, nonprofit coffee shop in Clifton Heights. (Staufs Coffee Roasters in Columbus is the other.)

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Coffee fans frothing over Starbucks' 'idea' site

By Elizabeth M. Gillespie, Associated Press

SEATTLE — Hundreds of coffee-obsessed consumers chimed in moments after Starbucks launched a website asking customers to pitch changes the company should make to revive its struggling U.S. business.

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Picking coffee beans for Starbucks a family tradition

By Manuel Valdes

Special to The Seattle Times

SAN JOSÉ PROVINCE, Costa Rica — Roberto Naranjo and his wife, Victoria Zúñiga-Naranjo, shake their heads when they remember life during the coffee crisis in the late 1990s.

The Naranjos had to choose between buying farming equipment and paying workers. They had to choose between maintaining their land and buying fertilizer. And debt mounted.

Then Starbucks arrived in the 2000s, and began buying coffee from the cooperative the Naranjos belong to — CoopeTarrazú — and life improved.

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Why Wall St. Hates Starbucks (SBUX)

By 24/7 Wall St.

Starbucks (NASDAQ: SBUX) has been a disappointment recently. Same-store sales in the US slowed over the last couple of quarters. The company pushed down its guidance. Founder Howard Schultz kicked out his CEO and took over
In late 2006, Starbucks traded over $40. It is well below that now, under $18 on most days.
Right as the stock peaked, the then-CEO Jim Donald made the audacious statement that the company would eventually have 40,000 stores. On the day he said that Starbucks had 12,440 stores. Looking back, it is almost certain the his prediction had no chance of becoming a reality. But, the $40 share price had gone to his head. He had become delirious with success.

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Tasting the Future of Starbucks Coffee From a New Machine

NYTimes.com

Thursday March 27, 1:38 am ET
By OLIVER SCHWANER-ALBRIGHT

Howard D. Schultz, the chief executive of Starbucks, dropped a bombshell last week at the annual shareholders meeting when he announced that as part of an effort to concentrate on making better coffee, the corporation had bought the Coffee Equipment Company of Seattle, maker of the Clover coffee brewer.

Coffee drinkers were buzzing. Clovers are $11,000 machines that brew one cup at a time and have become essential equipment at some of the country’s top independent cafes. How could the company now be the exclusive property of a giant corporation? In protest, Stumptown Coffee in Portland, Ore., one of Clover’s earliest champions, said it had decided to stop using Clover machines.

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Starbucks must repay $100 million for gratuities

Starbucks must repay $100 million for gratuities shared with supervisors, a San Diego judge rules.

By Roger Vincent and Andrea Chang, Los Angeles Times Staff Writers
March 21, 2008

Starbucks got caught with its hand in the tip jar and was ordered Thursday to pay California baristas more than $100 million.

In a San Diego County class-action lawsuit, a judge ordered the coffee giant to pay back tips, with interest, that the company had handed over to shift supervisors. Some baristas could receive more than $10,000, according to their attorney.

The ruling was met with cheers by California baristas. "I'm stoked," said Leekeisha Smith, who makes coffee drinks in the Starbucks at Sunset Boulevard and La Brea Avenue in Los Angeles.

"Wow. I'm just shocked that we'll get that [money] back." Smith, 23, said she found out about the lawsuit from a letter sent to employees.

Starbucks Corp. said it was outraged and vowed to appeal. In a statement, the company said the decision "is not only contrary to law, it is fundamentally unfair and beyond all common sense and reason."

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Starbucks Coffee Company To Acquire The Coffee Equipment Company

Starbucks Coffee Company To Acquire The Coffee Equipment Company And Its Revolutionary Clover Brewing System
3/20/2008

Seattle, WA - Starbucks Coffee Company recently announced that it has entered into an agreement to acquire The Coffee Equipment Company and its proprietary Clover brewing system. The Coffee Equipment Company is a privately held coffee equipment developer and manufacturer based in Seattle, Wash. Terms of the transaction were not disclosed.

The Coffee Equipment Company is best known for developing the revolutionary Clover system, one of the most significant innovations in coffee brewing since the espresso machine. The Clover?s specialized brewing process allows a barista to quickly deliver one freshly brewed cup of coffee at a time. This technique, which blends the best of the vacuum pot and coffee press methods, further develops and unlocks the unique flavor nuances of specialty coffees.

"Strategically, this acquisition will demonstrate our commitment to provide Starbucks customers with individual brewed cups of the rarest and most exotic Starbucks coffee using the Clover brewing system," said Howard Schultz, chairman, president and chief executive officer. "In my over 25 years at Starbucks, the Clover machine unquestionably delivers the best cup of brewed coffee I have ever tasted and we want to share this experience with our customers."

"Coffee is as complex, rich and distinctive as fine wines," said Zander Nosler, co-founder of The Coffee Equipment Company. "The Clover brings out amazing and distinctive coffee flavors -- like the earthy, woodsy flavors of an Aged Sumatra or the bright citrus tones of an Ethiopia Yergacheffe -- with the depth of the coffee press and a clarity that was formerly only found at the professional coffee grader's cupping table. It puts the coffee front and center.

"We are thrilled to be a part of Starbucks Coffee Company, given its brewed coffee heritage and passion for specialty coffees," Nosler said. "Personally, I'm delighted to unite our innovative technology with Starbucks? amazing influence from origin to consumer. Starbucks is uniquely positioned to change the way the world thinks about brewed coffee."

"The Clover brings drama and theater to the brewing process and enables our baristas to have emotionally rich conversations with our customers," added Schultz.

Starbucks expects to accelerate the roll out of the Clover machines to select domestic and international markets. Currently, they are in use in some Seattle and Boston area stores.

The Coffee Equipment Company was founded in 2004 by Zander Nosler and Randy Hulett. In 2007, the Company was the recipient of both the Specialty Coffee Association of Europe (SCAE) "Coffee Excellence" and Specialty Coffee Association of America (SCAA) "Best New Product" Awards. Additional information on The Coffee Equipment Company can be found at www.Cloverequipment.com.

SOURCE: Starbucks

Starbucks wants to bring back coffee aroma

By Associated Press

SEATTLE (AP) - Starbucks is introducing a new automated espresso machine and getting back to grinding beans in its stores as the coffee retailer seeks to re-energize its slumping business.

Facing thousands of shareholders eager to hear the company's plans, Starbucks Corp. Chairman and Chief Executive Howard Schultz on Wednesday announced the arrival of the Mastrena, a new machine designed to leave a smaller margin for error in pulling shots and steaming milk.

While likely to disappoint some longing for the return of old-school manual machines, the Mastrena is about seven inches shorter than the machines in stores now, which will make it easier for baristas to interact with customers.

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Generosity at Starbucks

By Rudabeh Shahbazi

RICHLAND, WA-- One person's kindness ballooned into a chain of generosity at Starbucks today. That chain was more than 200 links long, all Starbucks customers who started the day with one random act of kindness.

Groggy Starbucks regulars start their day by getting a little pick-me-up handed through their car windows in the mornings. Today one person decided to treat the car behind him at around 8 AM.

"I think it's a great idea," said Missy Cartmell, the 102nd person to continue the chain. "What a cool thing."

"It's a nice little surprise," said Jason Bailey, a Hanford teamster. "I was most certainly not expecting anything like that to happen, so I'll give someone else a nice little surprise."

The line of generosity caught on like wildfire, giving 209 people a good start to their day. Even when the stream of traffic stopped, the last car left money for the next person who pulled up.

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Starbucks getting it right

It came to my attention the other day that Starbucks, the largest coffee shop chain the world, has not been getting it "right" lately. Just take a look at the miserable performance of their stock over the past year if you think Starbucks has their act together.



Steve Shultz has returned to set Starbucks on the right track (or put it back on the track). The question is still open; will they get it right?

Starbucks tries its shot at quality espresso

An industry analyst says Starbucks' barista retraining effort to improve its products shows it's committed to turning itself around.

Associated Press

SEATTLE -- A day after shutting down most of its U.S. shops for three hours to retrain baristas on espresso basics, Starbucks welcomed customers back Wednesday with a new promise posted in stores: "Your drink should be perfect, every time. If not, let us know and we'll make it right."

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Free coffee up for grabs

Robert: seems to be a trend

Olympia Coffee Roasting Company's Roasting Works shop at 108 Cherry St. in downtown Olympia will offer free coffee to customers from 3:30 to 6:30 p.m. Tuesday to take advantage of Starbucks' planned three-hour closure for espresso training.
Click here to find out more!

Starbucks announced earlier thi s month that it would close 7,100 company-operated Starbucks stores in the United States for three hours to focus on training more than 135,000 employees.

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Coffee Klatch celebrates Starbucks store closures with free coffee

San Dimas, California (Market Wire) February 19, 2008 – Coffee Klatch
Roasting's two retail coffee shops in San Dimas and Rancho Cucamonga
will offer free coffee to customers on Tuesday, February 26th from
5:30 PM until 8:30 PM PST in celebration of Starbucks' planned 3-hour
closure for espresso training.

Described by Starbucks CEO Howard Schultz in a press statement as a
"bold demonstration of our commitment," the company announced earlier
this month that it would close 7,100 company-operated Starbucks
stores in the United States for 3 hours to retrain more than 135,000
employees.

Coffee Klatch, home of reigning United States Barista Champion
Heather Perry, has no need for similar employee remediation and
consequently invites the public to visit for an opportunity to taste
expertly crafted espresso beverages and exclusive coffees from exotic
locales -for free- at its two Southern California locations during
the closure.

"I'm not sure why it's going to take them 3 hours to learn how to
press a button," says Coffee Klatch Roasting owner Mike Perry,
referring to the automated espresso machines that are used by
Starbucks employees to prepare beverages. "While they practice
pushing buttons, their customers can come to Coffee Klatch and learn
how coffee is really supposed to taste."

Coffee Klatch Roasting locations:
San Dimas: (909) 599-0452
806 W. Arrow Hwy Ste A, San Dimas
57 Freeway and Arrow Hwy in the Target Shopping Center
Rancho Cucamonga: (909) 944-JAVA
8916 Foothill Blvd Ste C, Rancho Cucamonga
Corner of Foothill and Vineyard in the Thomas Winery Building

About Coffee Klatch Roasting

Founded in 1993, Coffee Klatch Roasting operates two coffee shops in
Southern California (San Dimas & Rancho Cucamonga) and supplies
wholesale customers from a dedicated specialty coffee roasting
facility. In addition to publicity gained from the accomplishments
of two-time U.S. Barista Champion Heather Perry, Coffee Klatch
Roasting has been recognized as serving the "Best Espresso in
America" by the Los Angeles Times and the "Best Espresso in the
World" by an esteemed panel of judges at the 2007 World Barista
Championship in Tokyo, Japan. For more information, visit the Coffee
Klatch website at www.klatchroasting.com.

Media Contact

Mike Perry
Coffee Klatch Roasting
(909) 224-9452

Starbucks to close some stores, stop selling breakfast sandwiches

By CRAIG HARRIS
P-I REPORTER

Starbucks will say goodbye to its breakfast sandwiches, close about 100 underperforming U.S. locations and slow down the number of domestic openings as the once-go-go coffee company retools itself amid a slowing economy.

The changes, announced Wednesday along with modest first-quarter earnings, also include putting more emphasis on overseas expansion. Few stores will be closed in the Pacific Northwest, and employees at the shuttered stores will be transferred to other sites, said Chairman Howard Schultz, who took over as chief executive Jan. 7.

"It's important to understand a new day is here," Schultz said in an interview with the Seattle P-I after the earnings release. "We want to put the customer at the forefront of every decision we make, and we want to exceed their expectations at what we are doing."


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Store Ambiance Key to Starbucks' Plans

By ELIZABETH M. GILLESPIE AP Business Writer
© 2008 The Associated Press

SEATTLE — It's been almost a year since Chairman Howard Schultz' bitterly candid memo bemoaning "the watering down of the Starbucks experience" landed with a thud on the desks of the coffee chain's top executives.

Mincing no words, he complained the company's unbridled growth had sapped the soul out of its stores _ his rallying cry to shift the focus back onto the customer.

He sounded just as frustrated earlier this month after the company fired Chief Executive Officer Jim Donald, handing the reins back to Schultz as part of a sweeping plan to reinvigorate the company, which has seen its stock slide 50 percent since late 2006.

Without releasing specifics, Schultz said Starbucks will scale back growth in the U.S., close lackluster stores, bolster expansion overseas and focus on changes to revitalize the atmosphere inside its stores.

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Starbucks testing $1 coffee, free refills-WSJ

Wed Jan 23, 2008 2:59am EST

NEW YORK, Jan 23 (Reuters) - Starbucks Corp (SBUX.O: Quote, Profile, Research) is testing $1 coffees and free refills, The Wall Street Journal reported on Wednesday, as the global coffee chain faces increasing competition from fast-food rivals.

The report said Starbucks is experimenting with a "short" $1 cup as well as free refills for brewed coffee in its Seattle-area stores. Starbucks charges around $1.50 to $4.00 for a coffee, depending on size and flavour.

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Trouble brewing at Seattle's coffee giants

Oh, how the caffeinated crash.

Just one week after Starbucks announced it was firing its CEO to reverse a stock dip and save its image, Seattle's only other large coffee company -- Tully's -- is out at least five executives, including a CEO and a CFO.

It's enough to make one wonder about the health of Seattle's coffee empire, not to mention the staying power of our distinction as the country's coffee capital.

But you can't judge this city's coffee love by its corporations.

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Starbucks Restores Schultz; Shares Up Most Since 2006

By Peter Robison and Mary Jane Credeur

Jan. 8 (Bloomberg) -- Howard Schultz was peddling a unique idea when he turned a Seattle coffee-bean roaster into a chain of U.S. cafes called Starbucks Corp. Now he is returning to lead a company battered by the competitive landscape it created.

Investors responded by sending the shares up the most in almost two years in U.S. trading.

Starbucks trained customers to demand better-tasting coffee. In the process, it spawned thousands of mom-and-pop imitators and enticed even McDonald's Corp., the world's biggest restaurant company, to open coffee counters.

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McDonald's Coffee Bars to Take on Starbucks: WSJ

by Reuters

McDonald's is set to launch coffee bars with "baristas" serving cappuccinos and lattes, moving into direct competition with global coffee chain Starbucks, the Wall Street Journal reported on Monday.

McDonald's will install coffee bars at its 14,000 U.S. stores, incorporating theatrics similar to Starbucks' counters, displaying espresso machines and having baristas prepare drinks, the report said.

The report, citing internal documents from 2007, said the move will add $1 billion to McDonald's annual sales of $21.6 billion. McDonald's will also sell smoothies and bottled beverages, it said.

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Starbucks Announces Strategic Initiatives

Starbucks Announces Strategic Initiatives to Increase Shareholder Value; Chairman Howard Schultz Returns as CEO

SEATTLE, Jan 07, 2008 (BUSINESS WIRE) -- The Board of Directors of Starbucks Coffee Company (NASDAQ:SBUX) today announced a series of initiatives aimed at driving shareholder value by refocusing the Company on providing customers with the distinctive Starbucks Experience and building on Starbucks legacy of innovation. To accomplish this objective, the Board has appointed Howard Schultz, chairman, to take on the additional role of chief executive officer, effective immediately, replacing Jim Donald, who is leaving the Company.

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Beth Burkholder, Starbucks icon, succumbs

Beth Burkholder spent much of her time in the last year right up to January 1, 2008 sipping green tea and engaging in conversation with many of the Starbucks' patrons at Starbucks' Camp Hill, Pennsylvania store. In between her medical treatments, you could say that she made Starbucks her second home. She passed away on January 4. She was only 46 years young. In tribute to her, the Starbucks partners at Camp Hill setup a table for her for the last time. As of this posting funeral services were undetermined.

Beth always sat at this table where she literally ran her consulting business with a Blackberry device and laptop. She was an icon of inspiration to all of us who knew her. Her presence influenced everyone particularly in the manner in which she dealt with the pain and suffering. She never expressed the overwhelming self-doubt and depression associated with her illness. Each day came to her as an opportunity to make a positive difference with her friends at Starbucks and elsewhere. Beth had more strength and courage than anyone could imagine; it never ran dry.

Life is a gift. Beth lived it fully. Thank you Beth for sharing your courage and strength.

May you rest in peace!

Starbucks to Team Up with Coinstar

Gourmet coffee giant Starbucks and automated coin-counting company Coinstar Inc. have teamed up to test an automated coffee machine under the Starbucks Seattle's Best Coffee label.

A Coinstar spokeswoman, confirmed the partnership late yesterday but would give few details about the test, such as when it started or where the machines are. She said financial details have not been disclosed.

A description of a prototype machine, along with a picture, is included in a report published Wednesday by Eric Wold, an analyst for Merriman Curhan Ford. In the report, Wold said that the machine is located near an Albertson's store in Bellevue, Wash., which is where Coinstar is based.

Coinstar is known for its network of automated coin-counting machines in supermarkets, malls, airports and other public locations in the U.S. and some foreign countries. Starbucks has said it is interested in developing an automated coffee machine, and even published a picture of one at an analyst meeting several years ago.

The picture published in Wold's report shows a kiosk with the logo of Seattle's Best Coffee, a brand owned by Starbucks. Wold said the kiosk allows customers to purchase anything from a regular cup of coffee to specialized espresso drinks, with prices ranging from $1.30 to $2.55. Wold said he believes the kiosk could provide Starbucks with "the ability to penetrate additional third-party locations with both lower upfront capital costs and ongoing operating costs." Wold said if the prototype develops into an operating business, field service maintenance could likely be provided by Coinstar's existing coin-counting field service team.

Source: Dow Jones

Starbucks has sites on Bulgaria and Portugal

Starbucks plans to open coffee houses in Bulgaria and Portugal next year. The first Bulgarian store will open in the capital city of Sofia, and the first store in Portugal is expected to open in Lisbon, the Seattle-based coffee chain said on Wednesday.

The company did not specify when the stores will open in 2008. Starbucks will work with joint-venture partners in Greece and Spain that help run the company's coffee houses in several other European countries. Its Bulgaria stores will be operated with Athens-based Marinopoulos Group, Starbucks' partner for stores in Greece, Cyprus, Romania, Switzerland and Austria. The expansion into Portugal will fall under Starbucks' partnership with Madrid-based Grupo VIPS, which helps run stores in Spain and France.

Starbucks has more than 15,000 coffee shops worldwide, about 4,300 of them in 42 markets outside the United States.

Source: Dow Jones

Starbucks EVP exercises options

The executive vice president of partner resources of coffee retailer Starbucks Corp. exercised options for 40,000 shares of common stock, according to a Securities and Exchange Commission filing.

In a Form 4 filed with the SEC Monday, David Pace reported he exercised the options on Thursday and Friday for $15.23 apiece, then sold all 40,000 shares on the same days for $22.84 to $23.66 apiece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

Source: CNNMoney

WA Coffee shop serves coffee without prices

With its blood-red walls and black leather sofas, Kirkland's Terra Bite Lounge looks like any other coffee shop — until you get to the menu. There are no prices listed. Terra Bite doesn't have them.

You read that right: No prices. Customers pay what and when they like, or not at all — it makes no difference to the cafe employees, who are instructed not to peek when people put money in the metal lock box.

"Does it really matter to any of our patrons ... whether they pay a dollar or three dollars or five dollars?" said Terra Bite founder Ervin Peretz, a 37-year-old Google programmer.

He doesn't think so, at least not in the comfortable lakeside enclave that is downtown Kirkland.

Through his "voluntary payment" cafe, Peretz is poised to become the Robin Hood of the Starbucks set. Using an efficient, low-overhead business model and narrow profit margin, he figures he can finesse the largesse of well-off latte lovers to cover the tabs of the less fortunate.

Not surprising that the coffee shop was opened by a software developer with Google.

Source: Seattle Times

Ending Dispute, Starbucks Is to Help Ethiopian Farmers

By THE NEW YORK TIMES
Published: November 29, 2007

After a dispute over coffee trademarks that turned into a public relations problem for Starbucks, the company said yesterday that it would open a center in Ethiopia to help coffee farmers improve the profitability of their crops.

The Starbucks chairman, Howard D. Schultz, made the announcement after meeting with the Ethiopian prime minister, Meles Zenawi.

“We feel very strongly that the long-term success of our company is directly linked to the long-term success of not only the Ethiopian coffee farmer, but all the coffee farmers around the world,” he said in a telephone interview from Ethiopia. Ethiopia had sought trademark status for its premium coffees — Harrar, Sidamo and Yirgacheffe beans — as part of an effort to get more of the retail dollar for its farmers.

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Feeling heat, Starbucks turns to a cool medium

Once-remote threats force chain to air TV spots

November 21, 2007
BY LEWIS LAZARE Sun-Times Columnist

This probably won't be the happiest holiday season on record for Howard Schultz. The man who transformed a small Seattle coffee shop into a global coffee behemoth over the past couple of decades has a lot of unpleasantries to deal with at the moment.

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The new Mr. Coffee

November 20, 2007
BY CHERYL JACKSON Staff Reporter/cjackson@suntimes.com

McDonald's Corp. is preparing to offer a line of specialty coffees in its restaurants. By the end of 2009, the company will be selling mochas, lattes and cappuccinos throughout the U.S. as it tries to take a gulp of the $12 billion-a- year speciality coffee business. Here's a cup-to-cup comparison of the market leader and the wannabe:

U.S. LOCATIONS

Starbucks: About 10,700

McDonald's: About 13,000

PRICE

Starbucks: 12-ounce Mocha: $2.75-$3.45

McDonald's: About $2.49

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Starbucks stops buzzing

The ubiquity of Starbucks has become a joke almost as common as the coffee shops themselves. Not so long ago, satirical newspaper The Onion claimed Starbucks was opening a Starbucks in the toilet of a Starbucks.

But for the Seattle-based coffee company, the joke isn’t funny any more. Last week, the firm revealed that the amount of traffic flowing through its US stores fell during the fourth quarter — the first dip since the company began disclosing the figure three years ago.

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Starbucks Shares Drop on Forecast

Starbucks Corp., the world's largest chain of coffee shops, fell the most in almost five months in New York trading after the company lowered its profit and sales forecasts following a first-ever decline in U.S. customer visits.

The dropped 93 cents, or 3.9 percent, to $23.17 at 4 p.m. in Nasdaq Stock Market composite trading, the most since June. The shares have lost 35 percent this year.

Starbucks raised prices by an average of 9 cents a cup in July, causing U.S. customers who face higher food, fuel and housing expenses to go to McDonald's Corp. and Dunkin' Donuts LLC for cheaper coffee. Wal-Mart Stores Inc. is among the few retailers to benefit from shoppers seeking lower-cost alternatives after reducing its prices ahead of the holidays.

``Investors are going to have to digest the fact that there's no sacred cow left in retail,'' Sharon Zackfia, an analyst at William Blair & Co. in Chicago, who rates the shares ``outperform,'' said yesterday. ``Starbucks has been more insulated, but things that are better insulated get impacted later in the economic cycle.''

Robert W. Baird & Co. analyst David Tarantino lowered his recommendation on Starbucks to ``neutral'' from ``outperform.'' Seven analysts reduced their price estimates on the Seattle-based company's stock.

Source: Bloomberg.com

Starbucks profits rise 35%, stock price falls

Seattle (AP) - Starbucks reported today that its fourth quarter profit jumped 35% despite a slight slowdown in store openings.

The Seattle coffee chain reported net earnings of $159 million dollars. Revenue increased 22% to $2.4 billion compared to one year ago. Starbucks opened 615 stores in their latest quarter boosting its worldwide count to 15,011. Same store sales increased 4% - toward the low end of the company's guidance.

In after hour trading on November 15 as of 6:11 p.m., Starbucks (sbux) stock price plunged $2.08 per share or -8.63%.

What drives coffee choices?

Dan Shearer
The Arizona Republic
Nov. 14, 2007 12:00 AM

Only in my weaker moments can I pay four bucks for a cup of coffee.

And what others consider a status symbol is to me nothing more than proof that we've bought into the sales pitch that the Starbucks experience is somehow worth a small fortune. And for many, it is.

But Starbucks took it in the shorts in March when Consumer Reports told the world that McDonald's coffee was not only cheaper but also better.
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A few months later, McDonald's launched its own line of iced coffees.

But are they better? Frankly, no.

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Is Starbucks Kosher?

Halachic Musings - Director, Tiferet Chaya Program for Girls
By: Rabbi Yair Hoffman

Jews like coffee. The practice of Jews drinking coffee dates back well over a thousand years, since its exportation from the Arab city of Kefa. Its appearance in the responsa oeuvres of the Rishonim and Acharonim attests to the fact that it is a drink of Jews.1 The practice of coffee consumption continues until today with many Jews drinking coffee at that “cool” and “hip” number one coffee chain in America—Starbucks.

Enter the halachic component, however. Is every coffee in this store permitted? The stores are under no hashgachah. “But, it’s only coffee!” some protest. “What could be wrong with coffee?”

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Will Starbucks offer free wi-fi?

FREE WI-FI AT STARBUCKS?

The blog mill heated up last week following Computerworld's predication that Starbucks would begin offering free Wi-Fi in order to compete with McDonald's, which is peeling away some customers with less- expensive coffee.

Brandon Borrman, a Starbucks spokesman, didn't exactly shoot down the idea when he told the Seattle P-I that the company doesn't comment on rumors or speculation. The company gave a similar response regarding a prediction from an analyst earlier this year that Starbucks would raise its prices, which the company did shortly after saying it wouldn't comment on rumors or speculation.

As Computerworld notes, the international coffee retailer was a pioneer in rolling out wireless Internet access for customers with its T-Mobile connections, which can be used for a connection fee. But the practice, which began in 2002, appears a bit outdated as independent coffee shops and Tully's, a small Seattle-based chain, offer free Wi-Fi as a way to differentiate themselves from Starbucks.

McDonald's said earlier this month that it would offer free wireless Internet access across its 1,200-strong restaurants in Britain, making it the country's biggest provider of free wireless broadband access.

Source: Seattlepi.com

Starbucks: More Charges of Union-Busting

The company known for stellar employee practices faces charges of violating labor law in two states

by Moira Herbst

The labor troubles brewing for Starbucks in New York are spreading to another state, putting the company's worker-friendly image on trial.

On Sept. 20, the National Labor Relations Board accused the coffee chain of unlawful anti-union activity at a store in Grand Rapids, Mich., the second time in recent months that the government organization has leveled such charges against Starbucks (SBUX). The company meanwhile continues a months-long trial in New York, facing charges that it unfairly suppressed organizing efforts by the International Workers of the World (IWW).

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"Java Jitter" singer thrown out of 203 Starbucks

New York City Entertainer DaVido Thrown Out of 203 Starbucks for Crooning Original Tribute Song to the Starbucks Corporation

The whole world is watching as DaVido aims to convince Starbucks CEO and founder Howard Schultz to put 'Java Jitter' on their CD racks.

NEW YORK, Sept. 19 /PRNewswire/ -- DaVido, the outrageous crooner, has been thrown out of over 200 Starbucks and it's all captured on video on YouTube.com. Because of his courage and tenacity, DaVido's Starbucks Rejection Tour Video is rapidly getting worldwide attention.

After Starbucks Corporation rejected his song "Java Jitter," DaVido decided to take matters into his own hands, and performed his song in as many stores as humanly possible hoping that corporate headquarters would take notice and embrace him and his quest. Unfortunately, every time DaVido tried to sing "Java Jitter" in the stores, he was consistently kicked out. DaVido's relentless goal: have his CD on the Starbucks music racks next to superstars such as Paul McCartney, Johnny Cash, and Ray Charles.

Watch YouTube Video

Howard Schultz on Starbucks Qualtity

In Mexico, CEO Howard Schultz said “At the very top of the market where Starbucks plays, I do not believe that others will have access to the quality of coffee that we are buying because we have secured those sources,” Schultz said.

What Schultz did not say was that Starbucks’ size of 13,000 thousand plus locations prevent them from sourcing their beans from smaller, artisan growers capable of growing the highest quality coffee beans. Instead, they require a “best of the biggest” approach, where they deal solely with growers who can supply coffee beans in large enough quantities to meet their huge distribution needs.

Let’s put that obvious one aside. Let’s deal with the “super premium” comment. Has anyone ever seen an ad where McDonald’s or Dunkin Donuts claimed “super premium”? Me either. What they do offer is “very good coffee and very good prices”. They call it “gourmet” but that could just mean “doesn’t suck” and based on the money pouring into both companies from coffee sales, any alleged shortage is not affecting them. Let’s assume they are buying the same beans (I will play along Howard). If you are a coffee grower and are approached by Starbucks and McDonalds, which dwarfs Starbucks in size, and both want to buy your beans, are you going to put all your eggs in just one basket? If you are, would it be the smaller guy?

Schultz, it seems, has fired a shot over the bow of, well, Starbucks since only they seem to think they require all the “super premium” beans. There may be a slew of small European cafe’s affected by this alleged shortage, but McDonald’s and Dunkin Donuts will not be. Also, whether Schultz or anyone else at Starbucks wants to admit it and clearly they do not, this IS their competition and it IS where their former customers are getting their coffee now.

Source: http://www.straightstocks.com

After Long Dispute, a Russian Starbucks

The first Starbucks in Russia opened Thursday in a mall near Moscow. The company was slow to enter this market, initially because of the economy and later because of a trademark squatter.

By ANDREW E. KRAMER

KHIMKI, Russia, Sept. 6 — With the hiss of an espresso machine and a note in Russian explaining the meanings of “tall,” “grande” and “venti,” Starbucks opened its first coffee shop in Russia on Thursday in a mall in this city near Moscow.

The opening sealed a victory for the company in a fight with a trademark squatter who had kept Starbucks from coming to Russia for more than three years, just as a coffeehouse culture was emerging here. Starbucks refused to pay the squatter to yield the Starbucks name in Russia and eventually prevailed in court.

The dispute illustrates the challenges Starbucks will face as it strives to expand outside the United States, where growth is expected to slow. Starbucks intends to open 20,000 coffee shops overseas while expanding to about that number at home.

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Starbucks really loves us!!!

Starbucks has finally decided to hold the hormones. Last Friday, Starbucks made the committment to make 100% of the chain's milk supply free of artifical growth hormones by December 31, 2007.

The Starbucks announcement follows two years of pressure from Food & Water Watch which launched the "Hold the Hormones Campaign" in 2006 asking consumers to demand that Starbucks buy better milk. Thanks to the thousands of emails, phone calls and rallies, Starbucks CEO Jim Donald has decided to the right thing.

Now you can don your cow suit and party with all the biscotti and rBGH-free lattes you can handle!

Thanks Jim for a job well done.