If this doesn’t show things are tough all over I don’t know what does. While the CEO maintains a positive outlook, if customers are causing such a huge drop in one of the new "staples" how will food and specifically meal prep fair? People have to eat, sure, but will they go with eating out or try their own hand at making something? I keep reading more and more articles of people stocking up on beef and chicken when it goes on sale and preparing dinners on their own. A lot of people I have spoken to are using their crockpots more having leftovers multiple times a week.

Gas prices have dropped to be sure, but I don’t think many people expect it to last and there are many indications that people are using their gas savings to stock up on food. From the previous article, layaway is making a comeback and there is a sense that people aren’t willing to overextend themselves like they’ve done in previous years.

Maybe saying people have a depression mentality might be going a bit far, but I certainly get the sense that a vast majority of consumers are thinking twice about purchases and holding off on many of their purchases until they are more confident that times will improve.

CHICAGO (AdAge.com) — Restructuring costs took a bite out of Starbucks’ fiscal fourth-quarter and full-year profits, the retailer reported today. Fourth-quarter earnings plummeted 97%, to $5 million, from $159 million in the year-ago period. The figure includes a $105 million charge for restructuring, and other costs associated with the company’s turnaround plan. Full-year earnings also fell, 53%, to $316 million, from $673 million last year.

U.S. same-store sales also plummeted, down 8% from fourth-quarter 2007. The company cited decreased store traffic, as well as lower average customer check prices, thanks in part to a reduction in merchandise and in-store music sales.

Starbucks’ 4Q Profit Down 97%, Same-Store Sales Drop 8%