Starbucks says it can withstand an economic slowdown

Chairman Howard Schultz says people who look at Starbucks as a barometer to measure the health of the economy and consumer spending are ill-informed, since it has historically targeted higher-income consumers, and is therefore somewhat insulated. He also says Starbucks has less than 8 percent market share of all coffee consumed in the United States, and that competition helps expand interest in the company's coffee. Starbucks has seen gains in markets with new Dunkin' Donuts stores, he noted. (Read the story at Reuters.com)

Comments

[James the Barista]

Just wait until Christmas time, or at least late Oct. Then it'll pick up. Just because of a slow month doesn't mean we need to have a huge sell off of stock. Some people look too short term...think about the run we had from 2001 til now, one slow down in 5 years is unheard of.

[Harry Cichy]

Starbuck's 'Free' Coffee can they afford to give the 'Free' Coffee though? This Coffee may cost a lot of $. Before entering some of these promotions the company's need to check out the downside. As in the Hoover Free Flight offer, it ended costing Maytag, Hoover's parent Millions & years of Litigation. Starbuck's it may be cheaper to give these folks their 'Free' Coffee.

[RjD]

Just how much coffee gets poured down the drain? I've seen plenty of expired coffee go that way. Isn't better to give some away then waste it?
My pet peeve is the pay to use Internet at the stores, there are plenty of others that offer it for free. That more than coffee could shift people from one store to another.

What economic down turn?

[Sarah]

Customers are leaving becasue of long lines...ya, well its because we are always under staffed. Two people can not handle a rush, three people can not handle a rush. STBX has the screwist way of desiding labor..not sales but customer count. As far as an economic downturn do to high gas prices and interest rates WHAT? gas has plumited more than 50 cents a gallon and interst rates are still low. Where is this economic down turn?

[BaristaBoy]

If you look at the stock price on a historical basis, you'll notice that (with the exception of glorious 2004) the stock price always goes down in the summer. Last year, the price was around $25 on October 1, then moved up by roughly 20 percent in just a few months. All together now, B-R-E-A-T-H-E.

[Boston Starbucks Rebel]

We are Starbucks and we can do anything. My district has seen nearly a 25% increase in sales overall month-by-month. Also, Starbucks is trying to give free coffee to customers so they can taste the difference between Starbucks coffee and other coffee. Also, if you notice the trip to Costa Rica was cancelled in favor of using the money in other areas. I think travelling to an origin country would've been great but obviously they believe that the money can be used in other areas. Are there any other Regions getting a pay increase?

[RedAsp]

People don't go to Starbucks anymore because it is too crowded.

[kelly]

Starbucks is not just a place that the rich can enjoy. It's really not that expensive . Then again, I drink regular coffee. Seriously, they do it right. I worked there and I will always support this company. They were very good to me and my family.

"People don't go to Starbucks anymore because it's too crowded"

Are you Yogi Berra or what? If "people" don't go to Starbucks anymore, then how can it possibly be too crowded? Inversely, how can it not be crowded unless people are going there?

"People don't go to Starbucks anymore because it is too crowded."

I don't even know where to begin with this...