Economy Slowing again, first thing consumers cut will be 5 dollar coffees
When the economy slows and people need to eat and pay the mortgage, the first thing to go will be $5 coffees at Starbucks, they'll either switch to a lower priced supplier like McDonalds or Dunkin or cut it entirely in order to save money.
My wife and I like about 4 cups of coffee a day. After I found out that McDonalds provides $.5/cup and even some places $.25/ cup for senior citizens. I get to McDonalds more often.
For good coffee, my wife likes Peets. And I think McDonalds if pretty fair coffee.
We ship about 3 pounds a month of Peets to UK for our daughter, who is a student over there.
Your mochas and caramel frapps, run about 5 bucks and even has coffee prices have come down, and Folgers and the like have reduced them to the consumer, SBUX keeps jacking up the prices. Sure they'll squeeze another 10 cents to the bottom line, but once you alienate a consumer with higher prices, they don't come back. So once they replace SBUX with the local coffee shop or McDonalds it's a lot bigger hit to them in the big picture.