The relentless march of Starbucks across the world’s high streets stumbled yesterday after the coffee chain said it would open fewer stores as customers went to cheaper rivals.

The fall in custom marks the group’s first decline since the ubiquitous chain floated in 1992.

Starbucks shares plunged 7 per cent on Wall Street yesterday as it admitted that the number of customers visiting its American stores had fallen by 1 per cent. The stock is down almost 50 per cent over the year.

While the group stuck to its target of having 40,000 outlets worldwide, it said that it would open 100 fewer stores in America than it had initially planned for next year. Jim Donald, chief executive of the Seattle-based group, denied that the company had saturated some markets and argued that slowing the rate at which the group was opening new stores in America would help it identify the right sites.

Howard Schultz, chairman, insisted that customers who had defected to cheaper coffee shops would return eventually because “they are not going to be satisfied with the commoditised experience or the flavour [offered by cheaper competitors]”.

Starbucks has had a bad year. The company has seen its raw material costs soar as milk prices increased sharply, forcing the group to raise prices twice this year.

Americans have cut back on spending amid the credit crisis, the worst property slowdown for 16 years and higher fuel costs.

To compound Starbuck’s worries, as its customer base has grown the percentage of its customers earning lower incomes has increased. Those customers are more likely to cut back on a latté or frappuccino than their wealthier counterparts. Starbucks has also been forced to cope with growing competition within the $1 billion-a-year (£490 million) US ready-to-drink coffee market.

At the end of last year, Starbucks shares were trading at about $40 each. At lunchtime yesterday the stock had fallen to $22.48.

For the 13 weeks ending September 30, the group had net earnings of $158.5 million - a 35 per cent increase on the same period the year before. Revenue for the period was $2.44 billion, up from $2 billion last year. Like-for-like sales rose 4 per cent world-wide.

Outside the US, Starbucks’ performance was healthier. The number of customers rose 5 per cent, with the average transaction value increasing by 1 per cent.

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