After Howard Schultz said he was concerned the British economy was "in a spiral", the UK business secretary Peter Mandelson reacted with the following four-letter outburst at a diplomatic reception.
"Why should I have that guy running down the country? Who the fuck is he? How the hell are they [Starbucks] doing?"
Starbucks said that Schultz had not intended to run down Britain. It issued a statement saying: "It is a difficult economic situation in the US and around the world. Please be assured that Starbucks has no intention of criticising the economic situation in the UK.
"We are all in this together and as a global business we are committed to each and every market we serve."
After hearing Starbucks' statement Mandelson said: "I'm glad Mr Schultz has stepped back from his remarks. I made my point and I regard the matter closed."
A spokesman for Mandelson added that he stands by the sentiment but not the language he used.
Mandelson's defence of the UK economy reflects the government's increasing concern that foreign economists are exaggerating the scale of the downturn in the UK leading to a potential collapse in inward investment.
Starbucks is planning to cut 6,700 of its 167,000 staff and shut 300 of its underperforming outlets after announcing 69% drop in profits during the first quarter.
The UK is its largest international market with 700 stores and is expected to bear the brunt of the coffee chain's planned closure of 100 stores in its international network.