Starbucks Profits Drop 28 Percent

Facing an increasingly stingy consumer, Starbucks is tightening its belt.

With profit down 28 percent, Starbucks said it would open fewer new stores in the United States, slash expenses and sell better-tasting coffee in the face of a troubled economy that is leaving some consumers with less discretionary income.

Read the whole story here.

Comments

[RoloTomassi]

Starbucks can survive only in an economy healthy enough to support unnecessary luxuries; if we get a brief repreive, then perhaps they can stick it out--but don't count on it. In an extended economic situation where Craigslist and other online classified ad resources are booming with people selling off anything and everyhing to buy groceries and gasoline, splurging on $3 - $4 a pop for coffee isn't going to be a habit maintained by anyone caught in dire straights.

My guess is that if we take notice, we will see many formerly successful businesses specializing in unnecessary luxuries taking hits that threaten their existence, and for some it will be certain death.

[Tator]

Only moonbats would pay $3+ bucks for a cup of coffee that can't be differentiated from McDonald's coffee in controlled taste tests.

[WIpatriot]

McDonald's coffee can strip the paint off a car, Tator-tot, and if you can't tell the difference you deserve to drink it.

[Chemwiz]

hahaha....moonbats?

[swoosie1]

The coffee they sell is great. Better than ever now that they have reset the espresso draw. The coffee, to-go gear---cup, sleave, etc. is still comforting and familiar. TBut the price--too high now. It really is a squeeze. I think what they are experiencing is a simple math scenario---most of us go to Starbucks several times a week and now, with the economy in the tank, we are cutting out at least one Starbuck treat a week. That is where the 28% comes in. Simple fix? They really need to retool their pricing. Give people a reason to go into Starbuck that 3rd time a week. For example--give a discount for that third cup...oh, and if you do, you will still sell me that ridiculously expensive pastry...

[Chemwiz]

The new Folger's Black Silk is amazing...make it at home and get a few travel cups!

[julieeiluj]

You'd think that with the billions they make, they could come up with a lid that closes so you don't spill those drops worth about 14cents each while walking and driving. Ever look at a dunkin donuts lid Starbucks, hmmmmmmmmmmm?????

[Nommo]

How do you manage to walk and drive? You have one of those Flintstone cars?

[WIpatriot]

My colleague, who I'm sure almost single-handedly supports one of their stores, has been on a bubble assignment in France for the past 6 weeks. Coincidence? You know what I think about coincidences.

[Gasparilla]

"better tasting coffee". What a concept. It's too bitter, and the new Pike Place is not that much of an inmprovement.

[CaptainHowdy]

I give them 2 years at most, then... buh bye.

Good riddance actually.

[ExPatriot70]

just wondering who really cares

[jubo]

Took a while for people to figure out how to make espresso... the rest buy the Clooffee - Clooney's coffee.

[dadw5boys]

$55.00 A GAL FOR COFFEE ?????

WHO BUYS IT?

[ErnestineBass]

There's market saturation, and then there's market over-saturation.

For the price of a supersized whatever at Starbucks, you can buy a pound of really good coffee.

[Enid]

That's what happens when you get your fingers caught in the tip jar.