$21.12
-0.56 (-2.58%)
Starbucks Corp (SBUX)
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Purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, coffee-related accessories and equipment primarily through its operated retail stores.
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I agree that right now, a four-dollar coffee is a hard sell; however, I think that Starbucks will pull through the recession: it's Starbucks. Yes, McDonalds and Dunkin' Donuts may be upping their quality, but Starbucks is branded - it's known for being quality, trendy, eco-friendly, and - this is something I think a lot of people seem to overlook - go into any Starbucks and look at the number of people working on their laptops/writing/reading/talking, etc. - can you imagine ANY of that going on in ANY McDonald's or Dunkin' Donuts? Starbucks has managed to associate its name with quality, trendiness, and the "cozy coffeeshop" atmosphere. In a town you don't know well, but want to find a cozy, local coffee place? Starbucks has that feel - it may not be a local place, but it does maintain the coffeeshop feeling, and I feel like that will keep a solid core customer base until the people who are downgrading to cheaper coffee can afford it again.
And regarding oversaturation: yes, you can find a Starbucks on almost every street in America. But I've seen numerous posts about Starbucks abroad, and each confirms what I already believed six months ago: Starbucks has a HUGE untapped market outside the US, and it's going after it. Go to Istanbul, and you'll find at least two within walking distance of the Blue Mosque; go around Eastern Europe, and you'll see the same. And on top of this, it's NOT just tourists going to these places - Turks go to Starbucks to get good coffee in Ankara, as do Ukrainians in Kiev. More shockingly, the coffee costs even MORE in these places - a grande, plain coffee in a Turkish Starbucks costs around $4, and a Frappucino's closer to $7 - and local people are STILL buying them.
SBUX may be struggling now, but it will pull through, and it will continue on.
I don't agree. Having worked for SBUX and seen them from the inside I will say they are not the trend setters they pretend to be...but a bunch of quasi thugs that are trying to muddle through a mess that they created a few years back. I believe that the public in general will see SBUX for what it is. A bunch of hucksters akin to used car salesmen that spin spin for a past time. Their coffee is what they sell. The aura mumbo jumbo is just hype. They try to peddle it to their employees but more and more realize they are notorious deadbeats that try to hustle you with a pound of coffee in exchange for cash on payday and a very thin retirement sytem that is sinking fast to the point that you can safely say ....They don't have a retirement system anymore. I think once the public changes their dailey routine to Dunkin Donuts and/or McDonalds they will ask themselves why they were throwing their money away to begin with. I don't believe SBUX can continue to be beaten down in the market place for 5-10 years until the affluent regain the financial position SBUX was able to exploit. Certinly Howard's flatulant news hype won't carry them much futher. The non productive gimmicks of swapping $4 coffee for $3.75 tea won't work either. Even plant managers will tell you that SBUX tea is notoriously horrible. I see them going the way of Braniff airlines and Steak and Ale sometime this year. I doubt that the Obama administration will give them a multi billion dollar grant just to keep a very marginal coffee product on the shelf.In my opinion the American work force will be much better off without the 1930s phylosophy of their unit management too.
agreed. the best has passed. this company fakes their philosophies and their practices are far from innovative.