After announcing plans to close almost 1,000 stores around the world in the face of recession, Starbucks has taken 30 U.S. stores off its closure list after their performance improved considerably.

In a bid to slash costs, Starbucks has reduced stores' wasted coffee and milk, made employee scheduling more efficient and, in some case, renegotiated rents. The company also has plans to upgrade its computerized cash registers, which they hope will bring further productivity gains. Meanwhile it is reported that McDonalds is making a run at Starbucks' core business with its newly launched line of McCafe coffee drinks.

Starbucks has also announced that its subsidiaries, Starbucks Coffee EMEA and Starbucks Coffee International have entered into agreement with joint-venture partner, Sigla, S.A. (Grupo Vips) of Spain, to which Starbucks through its subsidiaries, will assume 100 percent operating control of the Starbucks business in France, converting the market to a company operated business. As part of the transaction, Grupo Vips will be a fully licensed partner with exclusive rights to operate Starbucks coffee houses within the territories of Spain and Portugal. Prior to the execution of this agreement, Starbucks and Grupo Vips each had 50 percent equity stakes in the operating entities of France, Spain and Portugal.

In July, Starbucks opened a new neighbourhood café pilot store in Los Angeles, which will feature beer and wine, night-time hours and live entertainment.