billddrummer

Has Starbucks Bottomed? Not by a Long Shot

To gokou3:

It's reasonable to think that it's a cut-loss strategy, but however you define it, the net result is lower costs.

Now, I'm not saying that cutting hours at all locations makes sense. For example, there are Starbucks in Las Vegas that are open 24/7, and for those locations, cutting back hours would truly hurt business. But for most neighborhood locations I'm familiar with, the sales revenue generated during the final hour isn't sufficient to pay the staffing necessary to keep the store open.

I think the company will need to look at every avenue to restore growth.