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Are you cutting back on coffee?


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Are you cutting back on coffee? #1 (permalink) Tue Nov 11, 2008 22:24 pm   Are you cutting back on coffee?
 

A lot of US Americans are said to be cutting back on their coffee consumption and as a result Starbucks earned 97% less in profits than last year. Interestingly enough though Starbucks finally opened two brand new stores in downtown Leipzig -- both of the outlets are directly across from 'Coffee Culture', another coffee shop chain.

So what about you, have you reduced your coffee consumption because of the 'economic crisis'? Somehow it seems to me that here in Germany consumers are spending as much on fast food and drinks as they did last year. And according to CNN the fast food market in China has grown by 25% within the past year with McDonald's leading the field.
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Are you cutting back on coffee? #2 (permalink) Wed Nov 12, 2008 6:31 am   Are you cutting back on coffee?
 

Hi Torsten

You might find Starbucks' report about its fourth quarter (along with fiscal 2008) earnings results enlightening:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&id=1224645

As for me, my coffee consumption hasn't changed since I returned to the US. I drink as much java as ever.
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Are you cutting back on coffee? #3 (permalink) Wed Nov 12, 2008 10:55 am   Are you cutting back on coffee?
 

My coffee machine at home broke down, so I am compelled to cut down on coffee real hard - no coffee Sad.
The funny thing: when it broke down, I though I would be going through withdrawal, but no such thing happened - coffee is not addictive (at least for me).
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Are you cutting back on coffee? #4 (permalink) Wed Nov 12, 2008 15:58 pm   Are you cutting back on coffee?
 

I seldom drink coffee but I do have a habit of buying bottled tea. I try to bring my own though, not because of any "economic crisis" but it is pleasantly surprising that I can save a lot just by bringing my own tea. Smile

Nowadays I can only drink very milky coffee (with little coffee and more milk), the real one is too bitter for me. Plus, one cup during the day, and I will have a hard time going to bed, it's like I've been beaten all over but my mind just won't go to sleep. It's the most horrible feeling.
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Are you cutting back on coffee? #5 (permalink) Wed Nov 12, 2008 20:00 pm   Are you cutting back on coffee?
 

Yankee wrote:
Hi Torsten

You might find Starbucks' report about its fourth quarter (along with fiscal 2008) earnings results enlightening:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&id=1224645


I Amy,

I was referring to this report by the Washington Post:

"Starbucks said second quarter profit fell 28 percent, to $108.7 million, from $150.8 million a year earlier, while earnings declined 21 percent, to 15 cents a share from 19 cents. The results included reorganization costs of about 3 cents a share. The company said revenue rose 12 percent, to $2.5 billion."

There obviously is quite a huge difference between 'revenue' and 'profit'. The revenue of a company can be rising while its profit is falling as is the case with Starbucks.
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Are you cutting back on coffee? #6 (permalink) Wed Nov 12, 2008 20:41 pm   Are you cutting back on coffee?
 

Hi,

What is 'java'?

Thanks
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Are you cutting back on coffee? #7 (permalink) Wed Nov 12, 2008 22:15 pm   Are you cutting back on coffee?
 

SkiIucK wrote:
What is 'java'?


Hi, SkiIucK

http://en.wikipedia.org/wiki/Java_coffee
Lost_Soul
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Are you cutting back on coffee? #8 (permalink) Wed Nov 12, 2008 22:34 pm   Are you cutting back on coffee?
 

Torsten wrote:
I was referring to this report by the Washington Post:
Really? Was there supposedly a 97% decrease in profits in the second quarter, too?

It wouldn't surprise me if same-store sales at Starbucks had dropped somewhat (as compared to LY sales), however there are a number of other factors that have had significant impact on Starbucks' bottom line. Q4 this year (2008) was extreme.

Interestingly, Starbucks opened a new store a couple miles from here about 5 months ago.

------------------------------------------------

Hi SkiIuck

The word "java" is a slang word for "brewed coffee". Here is another link (in addition to the one Alex posted):
http://www.bartleby.com/61/19/J0021900.html
.
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Are you cutting back on coffee? #9 (permalink) Thu Nov 13, 2008 0:52 am   Are you cutting back on coffee?
 

I don't drink much coffee (or coffee much). hehe

And when I do, it's on the company's nickle:

I get a styrofoam cup of Grade A coffee from our deluxe push-button coffee dispenser(lol) and make it palatable by mixing in a packet of Swiss Miss hot chocolate mix... also free.

So I guess it's a poor man's Mocha.

Mind you, I only do this once a month or so.
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Are you cutting back on coffee? #10 (permalink) Mon Nov 17, 2008 21:39 pm   Are you cutting back on coffee?
 

I don't trust people who don't drink coffee Very Happy Very Happy
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Are you cutting back on coffee? #11 (permalink) Tue Nov 18, 2008 3:37 am   Are you cutting back on coffee?
 

I have here on bridge a small conflict between tea and coffe drinkers, it has actually turned into a chain of discussions about : why Norwegians have to drink coffe and Englishmen did not
or why English people have to drink tea and coffe not at all or just very little.
Of course both nations drink tea and coffe but it is for English a bit of their national pride to consume tea as for Norwegian kind of sea habit to have just coffe on bridge.
At the beginning Norwegians have even sabotaged purchasing process of a kettle , probably just to make a prove that they are serious about anti-tea polity.
Historically,it was granted for every seaman on duty by sealaw a right to drink coffee on bridge and it was often executed by seamen. This has been at least under Polish flag.
I consume roughly every watch something like four five cups of coffee.
The best coffee in the world in in Brazil or Colombia,there is a huge difference in taste compare to what we usually drink.

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Are you cutting back on coffee? #12 (permalink) Wed Nov 19, 2008 15:51 pm   Are you cutting back on coffee?
 

Hi, I didnīt cut back on coffee but abandoned smoking! Smile
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Are you cutting back on coffee? #13 (permalink) Sun Dec 21, 2008 0:58 am   Are you cutting back on coffee?
 

Torsten wrote:
A lot of US Americans are said to be cutting back on their coffee consumption and as a result Starbucks earned 97% less in profits than last year.

That didn't happen because Americans are cutting back on their coffee. It's due to more complex factors.

1. Starbucks didn't control its growth, and it opened so many coffee shops, so close together in some places, that the shops were cannibalizing each other's business. In some downtown areas there might even be two Starbucks in one block!

2. There are many other coffee chains besides Starbucks, and they are probably gobbling market share. I prefer Caribou Coffee to Starbucks. Also, chains like The Coffee Beanery -- which predates Starbucks -- have updated their image and service a bit.

3. Some privately owned coffee shops are opening specific market niches. There's one near me that does a huge business because they cater to the Albanian clientele. They serve types of coffee Albanians are used to, and they have Albanian TV on all day. Before that place opened, Starbucks was the best these guys could do, but now they go to the Albanian place. After all, you can't even get Turkish coffee at an American Starbucks. Down the street, the same family owns a shop that caters to a completely different clientele, so the shops don't steal each others' business even though they're very close together.

4. McDonald's, Burger King, Wendy's and other chains have upgraded the coffee they serve, so that people can get some of the types there that are most popular at Starbucks, but much cheaper. Blind taste tests show that people can't tell the difference very well, if at all. Plus, at the burger chains, the sizes have normal names, so a small coffee is called "small" instead of "tall", and large is called "large" and not some weird word.

5. The bagel shops and gourmet bakeries have the same kinds of coffee that Starbucks has, but they carry more down-to-earth food than Starbucks does. You can get a real breakfast or lunch there, but at Starbucks you can't.

Basically, you've got thousands of coffee shops -- chains and private -- who have identified Starbucks' weaknesses and are exploiting them.
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Are you cutting back on coffee? #14 (permalink) Sun Dec 21, 2008 8:46 am   Are you cutting back on coffee?
 

am a Tea person all the way Razz woot woot !

A don't need to woory bout price thingi i suppose? Lol n i avn't cut down my tea consumption XD

Lol
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Are you cutting back on coffee? #15 (permalink) Wed Dec 24, 2008 0:47 am   Are you cutting back on coffee?
 

Fan Of Arabian Horses wrote:
Hi, I didnīt cut back on coffee but abandoned smoking! Smile


Congratulations! Very Happy
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