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Will Starbucks Survive the Recession?

Starbucks has never been in so much trouble, financially speaking. The company's same-store sales continue to worsen as consumers visit the chain less frequently, and CEO Howard Schulz admitted, "We're beating ourselves up every day because we've just never seen numbers like this." He predicts that 2009 will be an even bigger challenge than the second half of this year but thinks the company will get by until the economy begins to improve.

It seems Starbucks strategy won't change much from its previous moves to make a comeback. Before, it was the introduction of a customer loyalty card and new lines of smoothies and healthier food items. This time, Starbucks is reacting to its worrisome finances with plans to start selling its Seattle's Best Coffee brand at nearly 2,000 Subway locations, launch new tea lattes, and will use only one recipe for banana bread instead of 11.

Do you think Starbucks will be able to make it through the recession?


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