Starbucks chairman Howard Schultz is reclaiming the chief executive's chair as part of a major restructuring initiative to slow the company's US growth, ramp up expansion overseas and improve offerings for its customers.

The ousting of chief executive Jim Donald, coupled with plans to close some US stores and slow the opening of new ones, comes after the world's largest chain of coffee houses watched its stock plummet 50 per cent over the last year amid declining traffic in US stores.

Starbucks wouldn't say how many poorly performing stores would close and declined to detail its revised growth plans until it reports fiscal first-quarter earnings on January 30th.

Shares jumped more than 10 per cent, or $1.86, to $20.24 by midday yesterday.

Mr Schultz, who served as chief executive from 1987 to 2000, said he would remain the company's top executive "for the long term" and that his agenda also includes streamlining the company's management.

Mr Schultz (54) joined Starbucks in 1982 as director of retail operations and marketing, then left three years later to start his own company, Il Giornale, hoping to take the Italian espresso bar mainstream in the US.

Il Giornale acquired Starbucks in 1987, ending the year with 17 stores.

The company went public in 1992 and had nearly 300 stores by the end of the following year. - (Washington Post service)