Financial Times FT.com

Starbucks stirs concerns over economy

By Jonathan Birchall in New York

Published: November 16 2007 00:54 | Last updated: November 16 2007 14:39

Shares in Starbucks slumped after the café chain on Thursday stirred concerns about the health of the US economy when it reported its first quarterly fall in traffic at its US stores and announced plans for its first television advertising campaign.

The planned holiday season advertising comes as Starbucks acknowledged that its supposedly “recession proof” sales of frappuccinos and flavoured latte drinks were feeling the impact of broader slowdown in US consumer spending.

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