posted
That company is a trooper. Despite rising and falling from success by selling horribly overpriced (yet delicious) brews, it managed to bounce back from the recession.
Now that's good management.
Posts: 3060 | Registered: Nov 2003
| IP: Logged |
posted
And yet I have the urge to go my local Starbucks and ask the barista's if thier wage's have been lowered in any way (i.e. lower starting wages, raise freeze etc)
Posts: 2302 | Registered: Aug 2008
| IP: Logged |
posted
I drove past a sign for an espresso stand today that had "reasonably priced" as one of their bulleted attraction points. It caused me to mull, with some amusement, about what "reasonably priced" would be considered for an espresso drink in the current market. Given that the end product doesn't cost a lot more to make than drip coffee (once you take the machine and the slightly higher level of skill required to create it, vs. the "fire and forget" drip coffee machine), and yet it tends to be priced around triple the cost, "reasonable" becomes very much in the eye of the beholder.
Not necessarily a critique of the whole thing- I've certainly been known to buy the occasional mocha. But it did raise a certain spark of amusement in my mind.
Posts: 3826 | Registered: May 2005
| IP: Logged |
posted
While only a slightly higher level of skill is required, I'd bet the time to prepare ratio, probably the biggest contributor to the cost of either product, is much higher.
Posts: 15770 | Registered: Dec 2001
| IP: Logged |
posted
I work in a bookstore but have spent most of the past week helping out in our store's coffee shop.
When I am by myself with a line, nothing makes me happier than to hear an order for "small coffee." It's quick and easy and alot easier than prepping two frozen drinks, a macchiato, a soy nonfat two splenda lattee, while prepping mocha mix and running to the back constantly because we go through a gallon of milk every few minutes.
Is the cost worth it? Probably not. Despite being around coffee all the time, I drink one maybe once a week. I don't understand the people who can afford to do it everyday. But lots do. In the last week, I've noticed that I've seen several if the people day after day. It's a habit and good for business. It's their own fault for paying those costs.
Starbucks as a company has turned itself around to improve productivity and efficiency. They can do the same work with fewer people and less waste. I applaud them for that. No doubt it accounts for a bit of their renewed success.
Posts: 1733 | Registered: Apr 2005
| IP: Logged |
quote:Originally posted by Sterling: Given that the end product doesn't cost a lot more to make than drip coffee (once you take the machine and the slightly higher level of skill required to create it, vs. the "fire and forget" drip coffee machine), and yet it tends to be priced around triple the cost, "reasonable" becomes very much in the eye of the beholder.
I don't see where you get this attitude. The cost of providing that drink includes paying the employees, occupying and maintaining the storefront, buying the supplies, etc. The "cost" is not the price of an ounce of beans. The price is that high because it costs that much to provide that service to anyone who just happens by, and the company also has to amortize the losses that can be caused by bad weather, or other circumstances. You are paying for the coffee, and you are paying for the coffee to be available in that location at any time you wish to visit, and meanwhile you are paying someone what is likely a modest profit. I doubt the margins on independent coffee stands are very wide. We're not talking about Starbucks, where a large corporate machine makes the cost of delivering that coffee lower, while the price is higher due to convenience and consistent quality. That, and independent cafes are often run by people who have sunk 5 or 10 years into a risky enterprise with no guarantee that it will *ever* become profitable, and in the meantime a great many of them, unlike other businesses, serve a valuable civic and social function as meeting places and venues for independent artists and students. You're paying for that too, and often you are paying less than it actually costs, not more.
The alternative to paying three times the cost of the materials for a convenient cup of coffee is to have no coffee shops anywhere. Why people are perfectly comfortable with the prices of restaurants and fast food (often with even *higher* margins) but not with espresso drinks is something I don't fathom, personally.
Posts: 9912 | Registered: Nov 2005
| IP: Logged |
Printer-friendly view of this topic
