Howard Schultz made the announcement in his Wednesday conference call with analysts. "The scent of the warm sandwiches interferes with the aroma of the stores," he said. (Boy, is he right!) Stores will still offer warmed pastries. (Associated Press reports the no-more-warm-sandwiches news.) || You can listen to a replay of the call at this link.
** The warm sandwiches "are going to be out by year's end." In the meantime, they will be "de-emphasized."
** Serving sandwiches got in the way of employees' "ability to make the perfect shot of espresso." In other words, spending time on sandwiches took away from the focus on coffee.
** The sandwiches will be replaced with "a breakfast menu that delivers what our customers are asking for."
** "We're going to be in the lunch business; we're going to modify it."
** "We are bringing back our annual leadership conference." There will also be open forums for all partners.
** Re the $1 short coffee, Schultz reminds analysts: "This offering is just a test."
** Schultz also notes that "it has only been three weeks since we made leadership changes, but we have made significant progress."
** Although underperforming stores are being closed and new-store growth has been slowed, Starbucks is still a "growth company," says Schultz.
** Detailed turnaround plans will be disclosed at the March annual meeting.