Starbucks: Trouble in Latte Land


"The company responsible for the ubiquity of coffee shops finds itself struggling with flagging growth, increased competition, and a declining stock price..."
Business Week:
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Reply to
SB

They are experiencing flagging growth because they are so big there are few new markets to expand into. Not at all surprising for the company that pretty much led the way to better coffee.
Reply to
John S.

According to what I have read it was mainly MacDonalds' concentrated efforts to cut into Starbucks market that was responsible for Starbucks' recent financial woes. I know that MacDonalds and Dunkin Donuts have both decided to go after Starbucks' clientel but I can't see how anyone buying coffee from either MacDonalds or DD would ever give up being a Starbucks client. But, then again, I never buy just coffee from Starbucks; it's usually an espresso or cappuccino. I guess the majority of Starbucks' clients must be "plain" coffee drinkers. Even considering that, I find MacDonalds "improved" coffee to be barely drinkable and the new DD coffees to be swill. I choose Starbucks only if I am on the road and can't brew my own coffee and would only hit MacDonalds or DD if there was absolutely no alternative caffine supply; I'd rather go to a 7/11.
Reply to
hanknj1

Recent recipient of the "1st Zine Award for Responsible Capitalism", Chairman Starbucks Howard Schultz apparently celebrated with the new acquisition of a $30M condo at 950 Fifth Ave., N.Y.C. -- replete in Italian-Renaissance deco and across from Central Park nearby Metropolitan Museum of Art -- with a decided upscale ambiance from Brooklyn housing projects where he grew up. Although the company is experiencing a 35% decline on shares since 2007, its largest ever loss, prompting some analysts to project a shareholder takeover, appearances aren't lacking. There is holiday help from the corporate going out to needy families in Michigan, baskets of select coffees for U.S. servicemen stationed overseas, as well as an upscale seasonal goodwill advertising campaign, such an encounter with man and reindeer on a ski lift to "pass the goodwill." There's also nationally syndicated TeeVee, now no longer considered declasse and off bounds, besides gala plans for a cross-cultural programme, Starbucks biggest, of store openings across Britain in 2008. That should help offset U.S. concerns. Starbucks really wants to become the Third-Place for Americans. See, it's pretty simple: first, there's your work, second, there's home, and third, well of course, there's Starbucks. We love what we do. We don't want you for a customer. . .come be our special friend.
Reply to
Flasherly

Well, their woes are really a declining growth rate more than anything else.
Actually it is thinking that one's are so much better that they are above competing with riff-raff coffee purveyors like McDonalds and Dunkin Donuts that will get Starbucks or the local espresso shop in trouble quickly. Coffee is taken many times by impulse, and a competitor moves in closer to where the customers are with a drink that is a reasonable substitute then that's where the business will go.
There are appparently a lot of people who think otherwise. And those people are the ones who will make or break a coffee business, especially the bigger guys.
Reply to
John S.

'''Not at all surprising for the company that pretty much led the way to better coffee.''' !!!!!! Have you ever tasted BETTER COFFEE, or do you just think paying $5-7 for a cup of coffee makes you better than a McD patron? *$ coffee is the worst crap ever made.
Reply to
631grant

5 to 7 DOLLARS?? really!
No topic is MORE subject to vast exaggeration than Starbucks
LOL LOL
dave
Reply to
lockjaw

Come on, be fair. It is really not that bad. It is better than a lot of coffee that I have gotten in some restaurants. Yes, it is costly, too costly really, and probably not as good as some specialty coffee shops, but I have worse.
Anthony
Reply to
Anthony Ferrante

Anthony Ferrante said:
Maybe he meant the Starbucks "experience" as a whole is awful. There's good gestalt and bad gestalt, and then there's gestalt you don't put in your coffee no matter what.
Reply to
George M. Middius

We all have different tastes, of course. But to my taste, yes, it *is* that bad. I'll grant you that there may be places that are worse, but to me Starbucks coffee is simply awful. It's not even a matter of price or value. Even if it were free, I'd rather have no coffee than Starbucks coffee.
--
Ken Blake
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Reply to
Ken Blake

IMO if you want a thick syrupy milk drink, go to *$ and you will probably be happy. If it is coffee/espresso you want go some place else... almost any place else!
Reply to
Johnbo

I certainly respect your opinion as well as others within this NG. No doubt you and others here have had more experience with good and bad coffee(s) than I have had.
One thing I do know. It was in this NG a year or two ago that someone mentioned I should try and find a good roaster to buy beans from as I was buying coffee off the store shelves in bean form (Folgers, Maxwell House, etc). I did and have not turned back since (check out this link and let me know what you know about this organization that voted this roaster/cafe as one of the top in the country and it is within a short drive of my home and I did not even know it existed:
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) In fact, I was directed to this shop by someone in this NG. I have been buying from them ever since.
When I open the bag, the beans shine, quite dark in appearance, the smell is unreal and beautiful, and the taste...well, buddies come over on a regular basis to have what they call, "a great cup of coffee..."
I pay about $7 per pound (which lasts me about a week). How many coffee drinks could I get from Starbucks for the same money?
Thanks, Anthony
Reply to
Anthony Ferrante

Yes, I was referring to the coffee and not the brew with all sorts of stuff mixed in. My 'problem' is that I always have preferred my coffee black with nothing to adulterate it. Even my espresso has to be black with nothing more than a possible twist of lemon rind. Therefore, Starbucks IS awful to my taste. I'm not a professional taster but enjoy good black coffee.
Reply to
631grant

Same here.
By the way, despite how often you see lemon peel in American "Italian" restaurants, I've never seen this *anywhere* in Italy (and I've traveled there extensively over the last 20-25 years).
If Starbucks is awful to your taste, you clearly have excellent taste.
> "Johnbo" wrote in message > news:479ba15b$0$84230$ snipped-for-privacy@news.sonic.net... > > IMO if you want a thick syrupy milk drink, go to *$ and you will probably > > be happy. If it is coffee/espresso you want go some place else... almost > > any place else! > > > > > > "Ken Blake" wrote in message > > news: snipped-for-privacy@4ax.com... > >> > >>> > >>> >It depends on how much stuff you put in to hide the taste of the awful > >>> >coffee............... > >>> > >>> Come on, be fair. It is really not that bad. It is better than a lot > >>> of coffee that I have gotten in some restaurants. Yes, it is costly, > >>> too costly really, and probably not as good as some specialty coffee > >>> shops, but I have worse. > >> > >> > >> We all have different tastes, of course. But to my taste, yes, it *is* > >> that bad. I'll grant you that there may be places that are worse, but > >> to me Starbucks coffee is simply awful. It's not even a matter of > >> price or value. Even if it were free, I'd rather have no coffee than > >> Starbucks coffee. > >> > >> -- > >> Ken Blake > >> Please Reply to the Newsgroup > > > > >
--
Ken Blake
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Reply to
Ken Blake

'> By the way, despite how often you see lemon peel in American "Italian"
I never been to Italy but I've been to France, Germany, and Luxembourg often and the twist is used there a lot along with a big block of sugar or raw sugar, which I don't use. I don't remember if they served it in England or not. Usually, the Guinness or Bass got the nod over the espresso there!
Reply to
631grant

-------------------------------------------------------------------------------------- Bingo!
I won't often turn down a cup of coffee ....unless I know it's *$.
Something about that char-broiled taste that can just ruin my day.
ds
Reply to
er

You need to get out more.
--
The whole problem with the world is that fools and fanatics are always so 
certain of themselves, but wiser people so full of doubts.
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Reply to
EskWIRED

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