STARBUCKS, which has ambitious plans for the Irish market, has replaced its chief executive Jim Donald with its group founder and chairman Howard Schultz and said it would slow an aggressive US expansion.

Troubled Starbucks has sacked its chief executive, handing the reins back to chairman Howard Schultz in a major restructuring initiative to pull the company out of a downward slide.

Starbucks said tonight it was bringing its chairman and former chief executive, Howard Schultz, back to lead a major restructuring initiative, replacing Jim Donald.

Coffee chain Starbucks is to open fewer-than-expected stores next year as it faces up to the impact of higher dairy prices and a faltering US economy.