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Starbucks off boil with a loss
31.07.08
Coffee chain Starbucks has recorded its first loss as a public company, capping a terrible week for the company, which says lower sales in the UK have slowed international revenue growth.
Starbucks, which has 670 shops in Britain, announced this week it was resorting to US diner-style free refills at its UK stores as hard-hit consumers skip their morning latte.
The chain has introduced the offer of a complimentary cup of filter coffee to anyone buying a hot drink and will run it for an indefinite period.
Starbucks recorded a third-quarter deficit of $6.7 million (£3.4 million) on revenue up a slower-than-expected 9% at $2.6 billion.
It this week announced the closure of 61 of its 84 Australian stores.
"International revenue growth was dampened somewhat by a slight decline in traffic in the UK along with slower sales momentum in Canada," the company said.
Chief executive Howard Schultz said earlier this year that its operations in Britain were hurting.
