US coffee giant Starbucks says it will cut the price of some of its drinks after seeing its profits plunge by 77% in the last quarter.
The chain reported a net profit of £17m for the 13 weeks to March 29 compared with £73m for the same period last year.
The company has announced plans to close 960 stores globally as consumers cut back on their spending.
Since July it has shut 507 stores in the US and 64 shops in other countries.
The closures are part of a plan to close underperforming stores and shave costs companywide.
Starbucks has also been stung by suggestions that some of its drinks are too expensive.
Chief executive Howard Schultz said prices on some products in some markets would now be cut.
The perception that its coffee is too expensive has led to companies such as McDonald's making inroads in the speciality coffee market.
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