Howard D. Schultz, the chief executive of Starbucks announced sweeping changes on Wednesday for the company as it seeks to reconnect with customers who have left for competitors or pared back their coffee budget in hard economic times.
The initiatives are intended to restore an authentic coffeehouse experience to the stores and, in turn, re-energize an ailing stock that has lost half its value in the last 15 months.
In front of 6,000 investors, employees and analysts at the annual shareholder meeting on Wednesday, Mr. Schultz introduced an improved automated espresso machine that grinds coffee for each drink and has a lower height that will allow customers to see baristas making their beverage. He said the company would roll out the Swiss-made Mastrena machines to three-fourths of Starbucks stores by 2010.
Mr. Schultz also announced the acquisition of the Coffee Equipment Company, the four-year-old Seattle-based maker of the Clover coffee machine, which brews a more expensive, higher-quality coffee one cup at a time. The price was not disclosed. Starbucks will roll out Clover systems in select markets.
