Starbucks should cut the horrendous hourly wireless charges and make Web access completely free when you buy two or more coffees. In the UK they charge £5 (almost $10) an hour. At least they’d gain some ground before wireless connections are ubiquitous and people no longer need cafes for Web access when they’re out and about.
They should also sell more salads and put a little bit of cold water in the top of my peppermint teas - I’m fed-up with burning my hands and tongue. And why did one lady offer to put milk in my peppermint tea?
Starbucks has had no substantial competition for years, but that is about to change. I think McDonalds posses a huge threat to the Starbucks “experience.” McDonalds has the resources (locations & budget) to take a chunk of Starbucks business. If McDonalds is even reasonably successful you will see “baristas” in Wendy’s, Burger Kings, Subways, grocery stores, etc. Then Starbucks will really start to feel the pain.
Howard, I think I broke a tear watching this one. Too many stores and with an average transaction of $12.52 (Geezeo Users http://fupi.ws/aBD ) maybe it’s just getting too expensive?
Maybe time for a Panera (PNRA) rebound? Good coffee, food and free wifi. Long Bread…comfort food for the poorly invested.
1) Their coffee tastes horrible.
2) They are in the CD business. WTF?
3) As said previously their wireless access is not free.
4) Terrible service
5) Their coffee tastes horrible.
Howard, you can’t call a stock that you is down 50% a buying opportunity if you rode it all the way down unless you are an ANALyst
even if you are a market bull and expect the market to turn, it seems that there are many more interesting places to be invested, with what is now called “case money” for many people. turning the starbucks tide is going to be daunting.
at least its not a slam dunk short no more , sez macke & cramer … in fact I think they both say to go long here
It was a great experience way back .. it was new, fresh, virginal, kinda almost exciting … like your 1st or 2nd girlfriend … now its just old & done … like your 1st or 2nd girlfriend
we’ll see if shultz can pull off the turnaround with everyone & their sister trying to take a chunk of their biz
sure its a better long than short here, but its no slam dunk, particularly in a recession where $5.00 lattes won’t fly out the door
15 responses so far ↓
Neil // Jan 12, 2008 at 4:03 am
Starbucks should cut the horrendous hourly wireless charges and make Web access completely free when you buy two or more coffees. In the UK they charge £5 (almost $10) an hour. At least they’d gain some ground before wireless connections are ubiquitous and people no longer need cafes for Web access when they’re out and about.
They should also sell more salads and put a little bit of cold water in the top of my peppermint teas - I’m fed-up with burning my hands and tongue. And why did one lady offer to put milk in my peppermint tea?
Brett // Jan 12, 2008 at 11:58 am
Starbucks has had no substantial competition for years, but that is about to change. I think McDonalds posses a huge threat to the Starbucks “experience.” McDonalds has the resources (locations & budget) to take a chunk of Starbucks business. If McDonalds is even reasonably successful you will see “baristas” in Wendy’s, Burger Kings, Subways, grocery stores, etc. Then Starbucks will really start to feel the pain.
Howard Lindzon // Jan 12, 2008 at 3:13 pm
you are both looking right for sure. the trend is definitely over
greenskeptic // Jan 12, 2008 at 3:20 pm
Welcome back Putz. You seemed pretty sober, despite the hangover. Good analysis.
Peter Glyman // Jan 12, 2008 at 5:33 pm
Howard, I think I broke a tear watching this one. Too many stores and with an average transaction of $12.52 (Geezeo Users http://fupi.ws/aBD ) maybe it’s just getting too expensive?
Maybe time for a Panera (PNRA) rebound? Good coffee, food and free wifi. Long Bread…comfort food for the poorly invested.
Eddie // Jan 12, 2008 at 7:41 pm
free wifi for mac users. apple pays a small commission.
keeps the starbucks experience by keeping it hip.
Eddie // Jan 12, 2008 at 7:54 pm
shorter skirts for the baristas
Eddie // Jan 12, 2008 at 7:56 pm
weight loss drinks. protein shakes. a reason to go in a few times a day
Soren // Jan 13, 2008 at 12:11 am
Some reason why Starbucks stock is down 50%:
1) Their coffee tastes horrible.
2) They are in the CD business. WTF?
3) As said previously their wireless access is not free.
4) Terrible service
5) Their coffee tastes horrible.
Howard, you can’t call a stock that you is down 50% a buying opportunity if you rode it all the way down unless you are an ANALyst
Howard Lindzon // Jan 13, 2008 at 10:20 am
my average price is $21 as I have blogged my trades on the way down. low blow dude
Broker A // Jan 13, 2008 at 1:54 pm
I now buy my coffee from Exxon gas stations.
True story.
Soren // Jan 13, 2008 at 3:15 pm
Howard - I keed, I keed.
martin g // Jan 13, 2008 at 4:19 pm
even if you are a market bull and expect the market to turn, it seems that there are many more interesting places to be invested, with what is now called “case money” for many people. turning the starbucks tide is going to be daunting.
Bruce // Jan 13, 2008 at 7:00 pm
at least its not a slam dunk short no more , sez macke & cramer … in fact I think they both say to go long here
It was a great experience way back .. it was new, fresh, virginal, kinda almost exciting … like your 1st or 2nd girlfriend … now its just old & done … like your 1st or 2nd girlfriend
we’ll see if shultz can pull off the turnaround with everyone & their sister trying to take a chunk of their biz
sure its a better long than short here, but its no slam dunk, particularly in a recession where $5.00 lattes won’t fly out the door
Howard Lindzon // Jan 13, 2008 at 8:48 pm
all good points and a battle zone only for the putzs like me
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