Starbucks Shelves Plans To Close Some Of Its Cafes

Starbucks is throwing out plans to close 30 of its cafes. The closures were to have been part of a broader initiative to pare down costs and meet a more realistic growth model for the company, as recession-strapped customers have been giving up their venti cappuccinos for cheaper substitutes.

However, yesterday at the Goldman Sachs retail conference in New York, Starbucks suggested that sales are rebounding, saying some stores have shown a turnaround in their performance, and are now ‘brewing’ significant profits. In response to this news, Starbucks rallied in stock market trading yesterday, adding 4.6% to close at US$20.09.

Tags: Starbucks, Starbucks Cafe Closures