Starbucks coffee,is the company doomed where $4 gas trumps paying $4 for cup of joe?

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  • BrentCrude
    SBR MVP
    • 11-16-05
    • 4665

    #1
    Starbucks coffee,is the company doomed where $4 gas trumps paying $4 for cup of joe?
    I just heard some nationally broadcasted stockbrokers saying that the reorganization of Starbuck's streamlining and shutting about 600 shops down is a good thing for the company and share price.They never once mentioned that the immeditae dropoff of $4 cups of coffee consumption correlated with $4 a gallon gas.How frigging stupid are these stock broker hacks on the radio and tv when they don't take into consideration that people need to buy gas and just buy $4 coffee with expendable income.When you don't have expendable income because gas is over $4 a gallon,you aren't going to buy $4 a cup coffee.These financial people should realize that we are in unchartered waters where past history can't dictate turnarounds and trends in consumers buying habits.

    Then you have the dollar tanking and people are more than happy now to keep their old Starbuck's cups and fill them with the cheapest coffee they find off the shelf of their supermarket home brewed.

    Does anyone else here think that Starbuck's is a doomed sinking ship?Or is it just in a temporary setback where in a few years no one will remember this down period for the company?
  • bettilimbroke999
    SBR Posting Legend
    • 02-04-08
    • 13254

    #2
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    • Dark Horse
      SBR Posting Legend
      • 12-14-05
      • 13764

      #3
      People are cutting back. But not specifically on coffee because it's in the price range of a gallon of gas. There is no correlation there.

      Starbucks has Howard Schultz back on board. The guy that started it all. And this is his first major move since returning. The cutback in stores is good for the company, because they had oversaturated the market. Expect more steps to come.

      Thanks to Schultz America now knows about cappuccino. Twenty years ago Americans didn't know what that was. This means that explosive growth for Starbucks is in the past. This is not like Steve Jobs coming back to Apple to continuously spin out new innovative products. Schultz can reorganize, as he is doing, but there was only one coffee revolution in this country, and he rode it. No need to worry, though. Coffee has the number one edge for sustained sales: it is addictive.
      Comment
      • daggerkobe
        SBR Posting Legend
        • 03-25-08
        • 10744

        #4
        I'm glad I don't drink coffee. 1 less thing to worry about.
        Comment
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