After becoming the largest coffee house in the world with 16,000 store in over 49 countries, Starbucks announced the closing of 600 under performing stores across 44 states in USA on July 2008.
On January, 2008 the company brought back its top representative, Howard Schultz to help the business turn around. Howard Schultz said in a conference "We lost the focus on what we once had, and that is the customer."
On January, 2009 Starbucks announced the closure of 300 more stores and cutting of 6,700 stores in order to improve their financial outlook.
All the cost-cutting helped Starbucks. In 2009, the company earned $ 151.5 million in the third quarter , compared with a loss of $ 6.7 million a year earlier. Sales improved each month during the quarter. Howard Schultz said that quarter results showed "positive momentum."
Starbucks has introduced instant coffee, changed its food recipes and begun a multimillion dollar ad compaign to keep costumers from defecting to lower-priced competitors.
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