During 2008, Starbuck’s went through some significant transitions. So at the start of fiscal 2009 they positioned themselves with great foundational planks. They started out by re-structuring their cost to allow for long-term operating margin expansion. Then they reviewed stores that were not performing and closed them. They took a little flack for laying people off but they were able to keep others employed by making such a move. Next they regained a new emphasis and investment in coffee leadership. Last but not least they made a stronger rewards program that was consistent with the Starbuck’s premium brand. Despite the economic issues facing America they felt that they were in a good position to grow.
In the fourth quarter of 2008, their revenues were 2.5 billion dollars. At the end of the quarter, January 2012, their total revenue was 3.44 billion dollars. That’s an increase of almost one billion dollars in only four years. Their rewards program has helped keep them in the black throughout an economic crisis. They have found a way to make their customers feel appreciated through this program. The different levels of the program bring customers back time and time again to reach the next level and receive the perks involved. Starbuck’s next step has been to provide a mobile app for consumers to make purchases via their phone. Their financial plan has worked consistently throughout the last four years and will continue as long as they stay on this path.