Starbuck's Update

• ±200 people from their real estate department where laid off last week– down from about 600 people.
• Most of these were in east coast markets where they had 5/6 people in a region, and are now down to 1.
• Nearly all of the So Cal real estate staff is being retained.
• The number of stores they are going to be closing is going to be in the hundreds…..but most of those will be the ones inside the Targets, banks, grocery stores, etc..
• Plans still call for 600 new store openings in the US
• CA focus in going to be on drive thru location (except in urban areas, etc.)
• Not only did Howard Schultz take back the reins as CEO, he also brought back the original real estate boss (who did the first 4,000 stores), who in-turn is rehiring most of the original team at the boardroom level of the real estate dept.
• They are definitely going back to the core, and that includes their menu – they will be getting rid of their breakfast sandwiches, and probably a lot of other stuff that takes away from their core identity.

This is all fairly public knowledge, but I thought this was a good So Cal focused update. I've wondered how the Starbuck's within a store concept was doing. I guess that's the answer.

Posted by: Richard