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  • Yeah, but how much will the Chinese spend on tea? Every time I eat out at a Chinese restaurant, the tea is free!

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    • You're seriously analyzing this deal based on your experiences in us Chinese restaurants?


      • 1 Reply to joeytee2002
      • The point I was trying to make is just because the drink is popular in China and India, does not mean it is a high margin product. What I noticed in my travels through Europe and England is that the coffee shops were busy and the prices high. Whereas tea was more low cost and there was fewer consumers and they tend to be older. I noticed the patterns since my wife is a tea drinker which she was trying to convince me that tea drinkers live longer.

        You really need to think about the cost to run a SBUX retail outlet. The truth is they could not even come close to breaking even selling tea and coffee, they need the traffic that you can throw in 10 cents worth of milk, a little flavoring and charge $4 more. As far as their bakery and fresh fruit, I would be surprised if they even make 15% profit.

        Again, SBUX needs to increase distribution. I was in a Williams and Sonoma and saw their coffee maker and a handful of their pods, then I stopped at Walmart and saw a huge end cap of GMCR's system. GMCR has distribution, SBUX not so much.

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