Lattes aren't selling like they used to

[RedEarth]

Starbucks Chief Doesn't See U.S. Economy Improving (Update1)

By Josh Fineman and Tim Catts

March 19 (Bloomberg) -- Starbucks Corp. Chief Executive Officer Howard Schultz said the U.S. economy is in a ``tailspin'' and said the coffee-shop chain will offer discounts and new drinks to lure back customers.

``You have an economy that really is in a tailspin, and many would say the consumer is in a recession,'' Schultz told more than 6,000 shareholders. ``We are dealing with things that we haven't seen before in terms of how people are responding to how tough it is.''

Schultz, who built the Seattle coffee chain into a corporation with almost 16,000 cafes, is counting on new styles of coffee and a slowdown in store openings to halt two quarters of customer declines. First-quarter revenue rose 17 percent, the smallest gain in two years, as consumers cut spending and McDonald's Corp. promoted lattes and cappuccinos.

Starbucks will introduce a new coffee blend and resume grinding the beans used for drip coffee in most locations. The company will start using an espresso machine that uses freshly ground beans at most locations in the next few years.

The coffee-shop chain will also introduce a loyalty-card program in mid-April, Schultz said. Customers will be able to get free syrup or milk alternatives for their drinks, or free refills on brewed coffee.

http://news.google.com/news?hl=en&tab=wn&ned=us&q=lattes

[onehandle]

1. My five dollar iced venti soy chai budget is tapped.

Thanks, smirk.

[BOSSHOG]

2. I'd much rather

sit in a Community Coffee house in the quarter, having a nice breakfast blend and reading the paper. I imagine Starbucks can cut their prices just a wee bit and still make a big profit.

[saracat]

3. Gee, that doesn't bode well for a certain candidate as though made up his "base" LOL!

[Clear Blue Sky]

4. compare to gas prices

People complain about $3+/gal gas and willingly spend the equivalent of $50+/gal on designer coffee.

Economics at work. People making choices about discretionary spending.

[nadinbrzezinski]

13. That's the point

people are NOT spending as much of their cash on designer coffee

Mostly they need it for gas and... groceries

[CoffeeCat]

5. Red alert!! Red alert!!!

What's an Obama cultist, latte liberal to do?

I'm scared.

Someone hold me.

;)

[peace frog]

6. McDonald's (yes, really) has a pretty good

cup 'o' joe for $1.60 (large size) - that's my morning run, and I don't miss a thing Starbuck's has to offer. So I don't drink lattes - Obama is still My Man. :thumbsup:

[phantom power]

7. I make my own tasty coffee at home, for pennies a cup.

Call me crazy.

[Tandalayo_Scheisskopf]

9. Ditto.

When friends come over, one of the first things they ask me is "Any coffee made?".

Of course, anywhere else in this one-horse-town(and the horse is broken, to boot), the coffee is essentially a old, bloody urine sample with a coffee benediction performed over it.

[RedEarth]

10. Me too...my own coffee and chai

Free trade home brew works just fine and is a heck of a lot less expensive. Also make my own chai....and it's excellent....heck of a lot better than anything you can buy...plus it makes the house smell wonderful.

[TransitJohn]

14. Me too.

Although, coffee beans are freakin' expensive! Outta control.

[Speck Tater]

8. I'm a tea drinker myself, so who cares? NT

[oldtime dfl_er]

11. I live in Seattle

so I care...kinda...plus I have friends who work for Starbucks. That's maybe what to remember, there are a lot of people working in those Starbucks. Starbucks does offer health care for half time employees, and some other benefits that many service jobs don't.

[nadinbrzezinski]

12. This is what I'd call the luxury product index

It is NOT just Starbucks, though it is pretty obvious

Now when I do frequent a starbucks these days I order Earl Gray TEA, a venti and add milk or creamer and splenda to it

That is about the price of where their lattes were four years ago, when I still could more or less afford it