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Starbucks Founder Back in CEO Saddle

Posted Jan 7, 08 7:45 PM CST in Business 

(Newser) – Starbucks reacted to slow sales and new competition today by bringing back founder Howard Schultz as CEO, replacing folksy chief exec Jim Donald. "We must address the challenges we face and we know what has to be done," Schultz said. Schultz vows to reignite sales by trimming back US stores and management, and expanding abroad, the Wall Street Journal reports.

The coffee chain giant saw sales drop for the first time ever in its fourth quarter; execs blamed the economy, but analysts said the US market was over-saturated with more than 10,000 locations. The company also faces high-end coffee competition from McDonald's and Dunkin' Brands Inc. Schultz is returning as Starbucks CEO after being chief exec from 1987 to 2000; Donald is leaving the company, the Seattle Post-Intelligencer reports.
Sources: Wall Street Journal, Seattle Post-Intelligencer

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A coffee-drinker walks away from a Starbucks store in downtown Seattle in this Tuesday, Nov. 13, 2007 file photo. Starbucks Corp. on Thursday, Nov. 15, 2007 said its fiscal fourth-quarter profit jumped...   (Associated Press)
Howard Schultz, chairman of Starbucks Coffee Company, unveils the Starbucks' Ready-to-Drink Coffee new product during its launch event Thursday Nov. 1, 2007 in Shanghai, China. Starbucks has come a long...   (Associated Press)
Howard Schultz, chairman of Starbucks Coffee Company, delivers a speech during Starbucks' Ready-to-Drink Coffee new product launch event Thursday Nov. 1, 2007 in Shanghai, China. (AP Photo/Eugene Hoshiko)   (Associated Press)
New Starbucks CEO Howard Schultz speaks in this undated file photo.   (Getty Images)
Starbucks Corp. chairman Howard Schultz, right, gives a pat to president and CEO Jim Donald as Donald is introduced before addressing the annual shareholders meeting in Seattle in this March 21, 2007...   (Associated Press)
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