Starbucks has announced that it will raise the prices on some popular drinks like Macchiatos and Fraps and lower the prices on coffee and some latte to continue to try to compete in the new economy driven coffee wars with the likes of McDonalds, Sonic, Panera, and others. You can read the whole article at the NY Times.

For a lot of people this is where the rubber will meet the road. I figure three things will happen:

• Customers will try other coffee drinks that are less expensive and decide they are close enough.
• Customers will try other coffee drinks and decide they would rather pay the extra.
• Customers will stick with Starbucks and just drink less.

Or …maybe some of them will start making frappuccinos at home. The thing that I think is funny is that there is always a segment of the population that will think because the Starbucks is more expensive it is going to taste better, which is not necessarily true.

Here’s the deal: People’s tastes are different. Some people drink Maxwell House or Folgers and are completely happy with it. Some of them have tried Starbucks and Peets and Green Mountain and honestly prefer the Maxwell House. Somewhere on the way to the caffeine jitters coffee drinkers turned into snobs and decided that if you don’t like the right coffee you have no taste.

I love me some good coffee. I am also a foodie and I am particular about the tastes I like. Ice Cream? Homemade or Breyers. Despite my almost imperceptible Texas drawl I cannot stand Blue Bell. Ick. The chemicals stomp aross my tastebuds like they were wearing muck boots. Does that mean that everyone that likes Blue Bell has no taste?

Well yeah, it kind of does….

No, of course not. It means that I like what I like.

Whatever Starbucks does, whether it raises or lowers prices? You should be true to what you like. Don’t buy it because it is the cool thing to buy, or because you think it will make you look more sophisticated and knowledgeable – drink it because you like it…and only for that reason.

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Post from: Kettle and Cup

Well, move on from Bride Wars to Coffee Wars.  Starbucks, Panera, McDonalds, and Dunkin Donuts seem to be in a hand to throat battle over your coffee dollar.  Don’t you feel important?

It should seriously be a simple thing.  You should go where you like.  But it isn’t that easy, largely because we have become a brand motivated society.  We live in a society where a woman will call 911 to report that McDonald’s ran out of chicken nuggets.  Do you think maybe we are taking ourselves a little too seriously? Maybe we have lost sight of reality?

The honest to God truth is that most commercially brewed coffee is only marginally different and most people will buy coffee where ever it is convenient. If there is more than one choice then most people will go with brand unless they have had a bad experience.  And then they will go with comfort.

Most people will not worry about social issues, fair trade, Rain Forest Alliance, or even taste.  And yet the purveyors of coffee will try everything in the Politician”s Guide to Dirty Tricks to woo coffee drinkers to their side.

Basically it should be pretty simple.  We live in an over-extended economy.  Most coffee drinking should probably be done at home.  If you are going to grab a coffee out you need to consider the local mom and pop place (if there is one) as priority if possible.  Why? Because keeping things local, supporting the local economy is important.  Small businesses create quality products.  The bigger your business the more likely the product will suffer.  To me an ethical small business will know when to stop increasing in size.  They will be happy with enough and not require more.

Do you realize the mark up on coffee?  One pound of coffee beans will make about 30 cups of coffee.  Let’s say a pound of coffee retail costs 8.99, just for a base figure.  That works out to just under 30 cents a cup.  Thirty cents.   Now, what are you paying for a cup of coffee?  1.50?  that is a five hundred percent mark up.  Five hundred percent! Now, you need to figure in overhead and expenses but still..you are looking at a huge mark up.

So, coffee wars? Be aware of what is happening and decide for your self if you want to play. Watch your back though.

image:sxc

Post from: Kettle and Cup