Writing for Slate magazine, Daniel Gross has a history of making sweeping generalizations based on the fortunes of the latte. This week, he's analyzing the same reports we agonized over last week: that Starbucks same-store sales were falling, because (Howard Schulz said) customers were tired of waiting in line for frappuccinos. Gross' theory is an interesting one, and he has charts to back it up: he says that Starbucks, like Whole Foods, P.F. Chang's, and Williams-Sonoma, are going through a trough thanks to the decline in the "ability and willingness" of high-income consumers to pay top dollar for a venti coconut latte; organic, farm-raised salmon; $8 lettuce wraps; and an Emile Henry pie plate in a different color for every holiday meal.
Instead, he says, these consumers are trading down to Burger King (and, one would imagine, Dunkin Donuts for coffee; Trader Joe's for slabs of frozen salmon; and Dollar General for 2/$1 pie plates). Of course, I can make charts, too, and when I add DG (Dollar General) and BKC (Burger King) to the mix, I discover that their boats are falling with the same tide that's bringing down the luxe choices. It's harder to sell things to the poor, too!
Gross' theory is this: "the cost of living well is rising more rapidly than the overall cost of living." My theory is more like, "people are getting cheaper, and that goes for all of y'all."
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Reader Comments (Page 1 of 1)
8-08-2006 @ 8:18PM
Lou Giacchino said...
Sarah Gilbert, Daniel Gross and Howard Schulz all get an "A" for their razor incisiveness and humor in nailing the dilettante see-and-be-seen, herd-driven customer base of "latte" mumbo jumbo Starbucks. And Starbucks also gets an "A" for knowing how to invent and market an entire new phoney coffee vocabulary for a world of unimaginative herd driven superficialists.
8-08-2006 @ 8:47PM
Mr. noitall said...
Starbuck's is so over that even I'm getting tired of bashing them.It's good to see that at least some people are recognizing Starbucks as being a "fad".( a point I brought up many times when commenting about them).
8-09-2006 @ 10:10PM
Frothy said...
All I know is that 1) I go to Starbucks every day, sometimes twice, and 2) there is ALWAYS a line so I am not the only one, by a longshot and 3) I also buy their products in the store. I am not rich and it does cost me money, but I am adicted to their coffee. Seems to me this ain't changin anytime soon, and in fact I expect to see more Starbucks products in stores, and more of others' products in Starbucks, going forward.