Comments on: $tarbucks

By: The Corner Office Blog - An entrepreneurs thoughts on business, personal finance and investing. » Blog Archive » You had to see this one coming…

Wed, 02 Jul 2008 02:06:50 +0000

[...] wrote about Starbucks’ trouble back in April of this year, and at the time, they were trading around the $16 mark just before estimates. While I predicted [...]

By: Jonathan

Jonathan — Tue, 13 May 2008 04:16:21 +0000

Starbucks (and most cafes) have already been more about the 30-minutes to 2 hours of quite time spent reading/studying/talking somewhere outside of home/work in trade for the $4 coffee. I never really understood the idea of paying that much money and running out the door.

By: MJ

MJ — Wed, 30 Apr 2008 04:32:23 +0000

Personally I see a lot less flights being made. I know my own company has cut back on travel, and I know our suppliers are doing the same. I think you will see increases in repair services to nurse equipment along though.

Other luxury items include motorcycles, new computers, high dollar foods (like Whole Foods, Applebees), and remodelling (Home Depot, Lowe’s).

Which thinking about it makes me maybe like companies like Kroger (cheap groceries) and LKQ (used car parts) might do well in this economy.

What else do you think will be luxury items?

By: Grant

Grant — Tue, 29 Apr 2008 22:43:54 +0000

Great info, Trisha!

I’ve noticed that coffee prices (i.e. the raw ingredient) have been on the rise as well, which I’m sure is eating into Starbucks margin.

@MJ, what other luxury items do you see dropping off in todays economy?

I don’t see fast food declining much, although the higher-end restaurants may be taking a hit…

By: Trisha

Trisha — Tue, 29 Apr 2008 17:56:45 +0000

It’s true! I’m a Starbucks fan (lattes only), but I’ve had to really cut back on my visits. Last time I did the drive through there, the barista told me they’ve had to cut back on the amount they brew fresh everyday. Actually, what they’re doing is brewing a quarter of the normal more frequently, which adds up to less coffee overall. Business has slowed, she said, so they’re wasting coffee, having it just sit and overcook in the pot.

Also, did you notice they’ve changed blends recently? Some customers have been unhappy with the switch, she said. I’m thinking the blend changes may be to cut costs.

By: MJ

MJ — Mon, 28 Apr 2008 22:11:53 +0000

Starbucks will continue to lose money until the economy gets a jump start. Expensive coffee is a luxury. Or they could lower prices…

Shameless Plug:
I just posted a couple of ideas for stocks in this economy.