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I drink 2 cups of coffee every morning at home. I prefer Folgers Gourmet Supreme and I stock up when it is on sale. It costs about 3 cents a cup. Between my hubby and I we spend under $6.00 a month on coffee.
There is no liquor in the house. We can take it or leave it.
The only other beverage we drink is the occasional Pepsi with Italian food and tap water.
BTW, I'm one of the weirdos...I don't like Starbuck's coffee I have been to some coffee houses in the past that were decent but really not worth the money IMO.
I'm right there with you! Starbucks coffee is about 3x too strong, not to mention the high price! I only want coffee in the winter, and prefer to have a cup at home. I'd rather feed my Roth IRA than Starbucks cash drawer.
Nope.....because it isn't true. The most expensive drinks are rich in dairy and the dairy costs more than .08 per drink. Furthermore, the expensive drinks take longer to make and require more expensive equipment so the labor/capital costs are far higher to produce them.
The price differences is largely due to the difference in time it takes to process an order for a cup of drip coffee versus a more complicated drink, though there is likely to be a bit of price discrimination as well.
that came from a former exec at starbucks in a cnn interview.
Starbucks profit margin is just under 10%. Relatively speaking, that's not a lot. Starbucks isn't making a killing off of what people are willing to pay. Starbucks pays more for their coffee beans and tea than other firms.
But the reality is that a whole lot of someones are drinking $5 Latte's regularly, or there wouldn't be coffee shops on every other corner.
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I'm one of them. Well, if you call once or twice a week "regularly". My admittedly frothy expensive frou-frou Starbucks coffee is $4.85.
I like very strong coffee so I buy Seattles Best or Starbucks Sumatra on sale at Wal-Mart. Or order from Peets or Peace Coffee online. It takes me over a week to go through a pound so it's not that expensive - I only drink one or sometimes two cups in the morning. Unless I am out to dinner or something.
I never drink soft drinks, ever (hate them), very rarely drink tea, rarely buy liquor...good coffee is a pretty minor and much-enjoyed indulgence of mine.
that came from a former exec at starbucks in a cnn interview.
No it didn't. Even if you isolate your attention to just the raw ingredient costs its more than .08, just estimate it yourself. But the main cost difference between the two is labor, no executive would mix this stuff up....
Here's a good reason for men to drink plenty of coffee:
A study recently reported in the Journal of the National Cancer Institute found that heavy coffee drinkers (6 or more cups/day) were 60% less likely to develop a lethal prostate tumer and 20% less likely to develop any form of prostate cancer.
No it didn't. Even if you isolate your attention to just the raw ingredient costs its more than .08, just estimate it yourself. But the main cost difference between the two is labor, no executive would mix this stuff up....
huh? i never said the costs were .08 cents. i said the difference in costs were .08 cents.
the coffee accounts for 2% of their costs,milk 6% and cups lids ,sugar and flavorings 4%.. i can see there not being a whole lot of difference in costs beween drinks since almost 90% of the cost of a coffee are fixed costs not related to the ingrediants regardless of what you order.
Last edited by mathjak107; 05-18-2011 at 04:11 AM..
huh? i never said the costs were .08 cents. i said the difference in costs were .08 cents.
Yes I know and it is that claim I'm address, as I said, add up the costs for just the (additional) ingredients and they will exceed .08.
Quote:
Originally Posted by mathjak107
.. i can see there not being a whole lot of difference in costs beween drinks since almost 90% of the cost of a coffee are fixed costs not related to the ingrediants regardless of what you order.
As I said before you're speaking as if the drinks magically materialize, but they don't, someone has to make them and this is actually the largest cost component and its not fixed (its bracketed). The time it takes to process an order for a cup of drip coffee is much less than it does to process an order for one of their specialty drinks. Hence, its the difference in labor costs between the two drinks that largely explain the price differential.
Every time people discuss this topic they speak as if the foolish people are at Starbucks paying $5 for a cup of coffee, yet nobody is spending $5 for a cup of coffee at Starbucks. Coffee at Starbucks is ~$1.50. People are spending $4~$5 at Starbucks for a Latte, a cappuccino, expresso, etc. These drinks aren't coffee and take skill and specialized equipment to make properly (doing it at home is very time consuming due to clean up, etc). Its like pretending that people are stupid for buying a well prepared Tenderloin at a Restaurant when you can cook up a ground beef patty at home for much less.... Its not even close to the same thing!
yes, i believe the highly trained technicians that formulate a gourmet starbucks latte is called a barista.
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I have been to some coffee houses in the past that were decent but really not worth the money IMO.
Well, if you call once or twice a week "regularly". My admittedly frothy expensive frou-frou Starbucks coffee is $4.85. 
