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Starbucks is feeling the burn...and doesn't want you to smell it


The company that introduced (and hooked) us all on the $4 cup of coffee is starting to feel the burn -- of the economy turning south, and of competitor's cheaper cuppas.

In its annual meeting today, Starbucks' newly-returned founder and CEO Howard Schultz laid out plans for staunching the chains' loss of sales. Among other ideas, the ubiquitous coffee house might introduce loyalty cards...and do away with using flavor-locked bags of pre-ground coffee in its stores.

Seems nobody likes that burned-coffee smell anymore. Instead, stores will once again start using only freshly-ground coffee, and will more carefully tailor its hot food selections to those that don't get in the way of that all-important fresh coffee aroma.

In answer to growing competition from the likes of Dunkin' Donuts and McDonald's (both of which serve a fine cup of coffee, in my humble opinion), Starbucks began testing $1 cup of house coffee in its Seattle stores earlier this year.

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