Starbucks Sees Large Gains in a Poor Economy

An article from BBC News talks about how even in the current poor economy Starbucks has seen major gains. Over the last quarter of 2009 (Oct.-Dec) the company saw their profits triple to $241.5 million compared to the $64.3 million brought in the same time of year in 2008.

The article also mentioned some of the things that the company had done to work towards these gains. Cost-cutting things that Starbucks did include cutting thousands of jobs and closing hundreds of stores that were not bringing in enough revenue and that were competing for business with other Starbucks stores. They also brought in cheaper coffees to eliminate the threat of cheaper competitors and to help win back lost customer who strayed to other coffee shops because of the high prices.

This goes to show that even in a poor economy, wise business choices like down-scaling (if necessary) and making sure to put the customer first can show major gains. I think that this could be an inspiration to struggling businesses across America. Unless, of course, you are also in the coffee business.