Money Beat

Starbucks based their business model when things were great. Now they are just adjusting their business model according to the current economic situation. Their prices were high but people can affort it, now money is tight their prices will come down.

Starbucks drove me out the door when the sandwiches started in the morning. The stink from the ovens is utterly offensive and actually clings to your clothes. Plus, it was just disgusting to watch people bring their children in at 7 AM and feed them one of these crappy sandwiches and call that "breakfast". Talk about teaching your kids bad nutritional habits! Plus, my local Starbucks get's invaded every Sunday morning by a bible study group that takes up all the chairs and no one says a word to them. Don't they have churches for that?

I have never card for Starbucks coffee, it tastes burned. It is increasingly the Starbucks PR machine has run out of steams and in turn their stores. Their concept of blanketing the market with stores has been done before (Radio Shack) and it did not work for them.

Starbucks was little more than a fashion trend, and in a short time will be little more than a memory.

*reads over the comments as she sips on her Caribou Coffee*

Mmmm nothing like cold press in the morning. Speaking of cold press, I had one at Starbucks and it tasted like tomato. o.O Granted that was in Philadelphia, a place where the water tastes like swamp, so perhaps that's normal.

Either way, some of you were gushing on about the tip jar. I'm not tipping someone who takes a cup, pushes a button and hands me a cup with coffee in it--especially considering you mix the concoction with cream/sugar if you don't take it black. If that requires tipping, then I should get tips for every time I answer a question at a customer site.

"That will be one dollar."
"For what?"
"I was doing my job and answered your question. Was it satisfactory?"
"Yes... it was."
"Then tip me, please."
"But, why should I, you were doing your job?"

For those commenting about the tip jar:

Baristas' crappy wages are compensated by tips. What does a waitress do but bring food back and forth to your table and ask if everything is ok. They didn't cook the food. At least baristas make the drinks.

Furthermore, some of us baristas DO take pride in espresso beverages. Some are idiots but at least give some credit and tip them for performing the service. When you make less than $12,000 a year and can barely afford your bills, the tips are a blessing and highly appreciated.

As I browse over the comments that have been posted, it makes me laugh. One blames Bush, others blame this on someone/something else. If you have that much a problem, don't go. Think its too much of a luxury in todays world? When I read that statement, it makes me think of owning a different BWM for every day of the week. Now THAT'S a luxury.

Tips? I know people who live on tips. Think of it this way. Tips are split up evenly between the employees every few weeks. Tips are basically a "thank you for your time and the *enter drink name.* It is basically their bonus for their work. Many companies give a yearly bonus based on performance and profits.

What you people are basically saying is, is don't give them their tips. Well fine.. How about we dont give you people your yearly bonuses? You are doing your job, why should you get extra for something you have to do regardless?

I like Starbucks,so what? Nobody is forced to go there,and $3-$5 is cheap compared to other "habits". And let's remember the definition of the word TIP: to insure promptness. Completely optional,but usually quicker service if you tip.

With the state of the economy I am not surprised that their company has taken a hit. More people are having to be frugal and that means having to give up their latte and brewing their own coffee, or finding a cheaper alternative (McDonald's). They need to lower their prices. Who in their right mind will pay $20 for a travel mug. That is just ludicrious. $10 is more than enough. You can get a really nice travel mug with stainless steel inside instead of plastic at Fred Meyer's for $6.99.

As a senior citizen, one of the reasons I don't go to Starbucks is the fact I don't know what most of the beverages really are with their super fancy names. I can get just plain regular coffee almost anywhere else and cheaper, so I do.

Starbucks just expanded too fast. Too many stores. Their fundamental model still works, though. Americans drink coffee and coffee byproducts. That wont change anytime soon. I would buy Starbucks stock.

The Starbuck's owner & CEO Howard Schultz needs to seriously consider treating his employees better. His actions, or inactions resemble the conduct of senior executives of the airline industry; if 150 million in profits were realized this time last year, what the hell did old Howy baby do with all of that money? As an international author on the deceptions of corporate officials of the airline industry I know a thing or two about officials of companies that have ethical "black-holes" in their character.

Regards, Anthony Allbright

Geezin' here, but good grief! The (not-for-profit) company I hope to retire from relatively soon provides coffee-makers, free, decent coffee & accouterments for each office area. Yet the kids, who don't see any future/grumble interminably about how they won't have Social Security (as if we were counting on it??)--these same kids spend about $10+ a Day! at Starbucks. As I said, we're a non-profit -- high prestige, low pay. We've Got decent coffee. And a fridge to keep any additives. Or even one's own special brew. I've been wondering for years how that works. Now all these 25-ish kids are muttering viciously about not being able to buy a home next year. D'oh.

I doubt the reason any 25 year old can't afford a house is Starbucks' fault.

I can make my own coffee! I dont care for their special drinks. If you do then continue to do business! I believe these trendy things will decline when people don't have as much money or time to waste on them!

"Christian:

You're right about that tip jar. Tipping at a counter or a drive thru? Crazy. I guess some people are so intimidated or ignorant of social etiquette that they will tip.

Posted by: James | Jul 31, 2008 12:27:35 AM"

Too bad many employees don't get the tips.

"SAN DIEGO — A Superior Court judge on Thursday ordered Starbucks Corp. to pay its California baristas more than $100 million in back tips and interest that the coffee chain paid to shift supervisors.

San Diego Superior Court Judge Patricia Cowett also issued an injunction that prevents Starbucks' shift supervisors from sharing in future tips, saying state law prohibits managers and supervisors from sharing in employee gratuities."