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Starbucks backtracks on plan to provide NY calorie counts early




When New York City decided that chain restaurants would have to display calorie data on their menus, Starbucks (NASDAQ: SBUX) seemed almost excited about complying.

The chain was set to release the calorie data on Monday but has now decided that it will wait until the law goes into effect on April 15th.

The New York State Restaurant Association is suing on the ground that -- get this -- requiring stores to post the calorie data violates their free speech rights. Good luck with that one.

It remains to be seen how much of an effect this will have on Starbucks -- I'd bet that Starbucks and other upscale eateries will be more effected than fast-food chains because restaurants like McDonald's (NYSE: MCD) are already known to be unhealthy. A lot of people went to theaters to see a movie about how unhealthy it is!

But Starbucks doesn't have that reputation, and its yuppie customer base could be turned off when it discovers that a Venti Double Chocolaty Chip Frappuccino® Blended Crème with whipped cream has 670 calories.

As long as it's just New York, it won't be an issue for Starbucks shareholders. But if other cities follow suit, it might be worth following.

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Last updated: July 04, 2008: 11:39 PM

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