Starbucks profits down 97%!!!!!

[Mega]

Seems there IS a limt people will pay for brown coloured sweet hot water!
http://business.timesonline.co.uk/to...cle5127267.ece

(Well done EJ!)
Mike

[Starving Steve]

Re: Starbucks profits down 97%!!!!!

I can not think of anything more out of place with the times than sitting around on your duff and sipping lates--- while everyone around you is starving. Decadence might be the word to describe this kind of behaviour.

The whole business model of Starbucks needs to be re-worked. Maybe a soup kitchen with 10cent coffees would be more appropriate for the times.

Thinking about dinosaur companies such as Starbucks or Ford or GM, really, the best future for them might be bankruptcy.

[Spartacus]

Re: Starbucks profits down 97%!!!!!

I swear Toronto has more bubble tea outlets now than starsucks & 2nd cup of crap. Not more than Tim Horton's yet, but probably soon ...

Seems there IS a limt people will pay for brown coloured sweet hot water!
http://business.timesonline.co.uk/to...cle5127267.ece

(Well done EJ!)
Mike

[Starving Steve]

Re: Starbucks profits down 97%!!!!!

We had a Second Cup outlet in Langford, but they couldn't make it. The mall rent killed them.

A look at Langford, BC to-day: Who can make it? Costco, Wal Mart, Superstore, and Fairway Market. Maybe the dollar store, too, but that is about it.

The businesses that are making a living have thin margins and high volume sales. They are very good at what they do. For example, Fairway Market sells hot foods to take-out, at rock-bottom prices. So, for the price of the old single $3 latte at Second Cup, you now get an entire lunch, cooked hot, to take-out or eat-in at tables in the supermarket.

This is how deflation is working, and businesses that can not or will not adapt to the times, should close.

For dinner? Maybe an entire chicken cooked hot, for $7? The chicken will feed an entire family for two days. In other words, about two old lattes now equals two days of chicken, cooked hot and spiced with BBQ seasoning.

And people are telling me gold is going up? I don't think so, not yet. Gold may go to $600 first, then maybe higher later.

[touchring]

Re: Starbucks profits down 97%!!!!!

I swear Toronto has more bubble tea outlets now than starsucks & 2nd cup of crap. Not more than Tim Horton's yet, but probably soon ...

Interesting, the taiwan bubble tea concept has taken off in toronto?

bubble tea shops don't need sitting space, so they can even operate from a 100 sq ft outlet.

almost anyone can operate a bubble tea shop, everything comes in powder form, and you just need to cook the bubbles in hot water. lol

[Spartacus]

Re: Starbucks profits down 97%!!!!!

you boil the "pearls" - tapioca balls that sit at the bottom.

the bubbles refer to actual air bubbles (foam) on top of the tea.

It's catching on everywhere there's a large asian population - Toronto (and its Asian - heavy suburbs of Markham and Richmond Hill) being the highest penetration in North America so far - probably even higher in parts of BC. but I don't haver personal knowledge of that.

Interesting, the taiwan bubble tea concept has taken off in toronto?

bubble tea shops don't need sitting space, so they can even operate from a 100 sq ft outlet.

almost anyone can operate a bubble tea shop, everything comes in powder form, and you just need to cook the bubbles in hot water. lol

[Spartacus]

Re: Starbucks profits down 97%!!!!!

my purchasing is going exactly the way you outline. Cheap rent, cheap high protein food. I Have not had any "high rent no-food" (donuts, coffee, etc ...) for a long time.

the economic downturn has not hit hard yet in this area, but I suspect it will be very hard when it happens.

Lots of folks are saying Canada will do much better than most, BUT you hear the occasional commentator note that while there is not a lot of subprime in Canada, Canadian debt levels are higher than the US. What happens when lots of those non-subprimers lose their jobs and housing starts accelerating downhill?

We had a Second Cup outlet in Langford, but they couldn't make it. The mall rent killed them.

A look at Langford, BC to-day: Who can make it? Costco, Wal Mart, Superstore, and Fairway Market. Maybe the dollar store, too, but that is about it.

The businesses that are making a living have thin margins and high volume sales. They are very good at what they do. For example, Fairway Market sells hot foods to take-out, at rock-bottom prices. So, for the price of the old single $3 latte at Second Cup, you now get an entire lunch, cooked hot, to take-out or eat-in at tables in the supermarket.

This is how deflation is working, and businesses that can not or will not adapt to the times, should close.

For dinner? Maybe an entire chicken cooked hot, for $7? The chicken will feed an entire family for two days. In other words, about two old lattes now equals two days of chicken, cooked hot and spiced with BBQ seasoning.

And people are telling me gold is going up? I don't think so, not yet. Gold may go to $600 first, then maybe higher later.