Just a couple of days ago I was singing the praises of Starbucks's (SBUX) technical performance. In fact, I may still be on the verge of turning a bullish corner when it comes to the stock, but then I hear reports the company is test-marketing a blueberry waffle that costs $2.50. For the record, this price is not for a plate of waffles, but for one waffle. A single, blueberry waffle (perhaps looking quite a bit like this waffle, which is labeled as caramel, for $2.50. Yes, $2.50. Call me cheap (it won't be the first time, or the last), but that seems like a lot of money for one waffle -- especially considering that a box of 10 frozen waffles is roughly $5. Consider this, McDonald's (MCD) charges a dollar for a sausage McMuffin (sausage and cheese on an English muffin). My guess is that the MCD's offering is a bit more filling than what appears to be a cookie masquerading as a waffle.
This decision is one example of why I have found it nearly impossible to be bullish toward SBUX. Yes, the stock performs well, but the company makes some questionable decisions -- especially in regards to price. The company charges far too much for its coffee and eats, and I am sure that this practice costs the company customers.
That said, there is a rabid SBUX following out there and these coffeeheads have to have their venti frappasmoothies with whipped cream. I won't lie, I have an occasional java from Schultzie's crew, but it is a special little treat -- not a daily happening. The company is lucky that there are some people with money to waste on overpriced coffee drinks, because this is the only reason the company continues to do business.
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Reader Comments (Page 1 of 2)
3-19-2010 @ 7:08AM
nickyys said...
while that is a lot for a waffle, if you go to a restaurant, you pay quite a bit more for a waffle.
3-20-2010 @ 8:30AM
Sunshine said...
It looks more like a stroopwaffle from the Netherlands or Belgium- two thin cookies made from the same batter as a waffle cone with caramel between them. Hope they tatste as good for the price- though it's pretty much in line with their other pastry prices.
3-20-2010 @ 8:33AM
Brad said...
Well tell ya, I stopped going to Starbucks long time ago, first price of coffee, second coffee was so stong and bitter I tasted it for four hours after drinking a cup. But my beautiful wife said she wanted to try again because she is comfortable with the enviroment with in their stores, although I am comfortable in Duncan doughnut, or Dennys. Anyway I have found that a half a cup of water and the rest house coffee is really a decent cup, and when my wife orders our coffee that way the server usually charges for one cup of coffee which is fare for both sides of the counter. As far as treats go forget it, very high dollar wise. Told Wife we can do to Denny's or some place else for a full meal for the price of a cup of coffee and a blueberry waffle.
3-20-2010 @ 9:09AM
Bella said...
The best Starbucks treat for me is one of their little vanilla scones. I think it's only $.75 and well worth it. If I feel like chocolate I get the little package of chocolate covered grahams.
The waffle looks too crispy and not worth the $2.50. Sorry.
3-20-2010 @ 9:38AM
MARY said...
A few years ago, I would treat myself to a decaf chocolate crushed ice drink with whipped cream on the top. Came in a medium sized cup with one of those clear cone shapped tops. Tasty for a treat monthly. Went to Duncan D and theirs was okay and cheaper. Got the donut bug recently and get their special for $2.99 plus tax. It's a medium coffee with cream or sugar or nothing, and it includes two discounted donuts. I don't like most of their donuts as I find them dry. When I get home, if I feel like iced coffee, I have a giant glass mug and empty the 14 oz medium hot coffee into the mug that is filled with large ice cubes. Works fine and is less expensive than ordering a medium iced coffee, because they use too much ice and you end up with about six oz of coffee. Even when I say to add very little ice, they don't listen.
I'd say skip a time or two and treat yourself to a REAL BREAKFAST OR LUNCH EITHER AT IHOP OR DENNEYS. They know how to do foods, have good coffee, lots of syrups and you can sit and enjoy yourself. Plus, what's better than the egg and waffle or pancake specials. I say sit down, enjoy, take your time, because you'll find this is the right way to eat and enjoy yourself.
3-20-2010 @ 10:53AM
Kkaiser005 said...
If you have a Caribou coffee in your area, give it a try. Yes, it is still pricey, but I get migraines from Starbuck's coffee. Caribou purchases at least some of it's ingredients from local businesses, which I like to support as much as possible.
3-20-2010 @ 11:12AM
Kristin said...
A 12 oz cup of coffee at Starbucks is $1.50, and if you register a starbucks card you can get free refills. I had breakfast at a local diner and paid $2.29 for a coffee. People have this idea that coffee at Starbucks is outlandishly expensive, but the stuff that's expensive is the huge fancy frilly drinks, and those are expensive at other restaurants too. Some of the snacks are definitely a little more expensive than I would want to pay, but its a business and they need to profit. I know they offer affordable healthcare to even part time employees, which is not an easy thing to find these days, so at least not all of the profit is going into Howard Schultz's pocket.
3-20-2010 @ 11:34AM
daize1617 said...
A dollar menu sausage mcmuffin at McDonald's gets you antibiotic pumped, factory farmed meat that includes monosodium glutamate (MSG) on bread that's made with partially hydrogenated cottonseed and soybean oil (transfat). You won't find that in Starbucks' products. They also rid all of their food products of High Fructose Corn Syrup (which is the inexpensive alternative to sugar that's recognized as a main contributor to obesity in America due to it's ineffective glycemic response). Their coffee is more expensive because it's Fair Trade, which advocates the payment of a higher price to producers in developing countries to promote better trading conditions and sustainability.
You may pay a dollar now, but what happens when you start to put on weight and develop Type 2 Diabetes? You'll be paying much more in healthcare. At some point, we need to realize that certain products cannot cost so little and be made with honesty and quality. We need to use our money as a vote for better quality, healthier food and better working conditions for its producers. It's a scary thought that people don't care so much about the ingredients of the products they put in their body and how it will effect their health. Believe me, I'm not saying a waffle is going to turn things around because it's $2.50, this just sparked my train of thought when someone would choose a sandwich of $1 processed meat over a brand that strives to create better food for it's customers.
Sorry if this is all a little preachy but I hope it gets people thinking a little bit!
3-20-2010 @ 11:37AM
daffodil said...
I go to Starbucks quite frequently, but not into the regular stores- I go to the Starbucks stand inside Safeway Grocery store. The girls working that stand know me, know what I most always drink, and I'm not charged quite as much as in a regular Starbucks store. My trick, though, is to do it this way:
I order a grande americano (espresso cut with water, instead of milk), and have them add the same chocolate as if I were getting a mocha; I also have them put whipped cream on top. It tastes quite close to a real mocha (I think so, at least), and saves me about a dollar in price! I generally pay about $2.34 for it, though sometimes, they do charge for the chocolate (depends on who's working), so then, I pay $2.77 or so. But for the most part, I get a drink I like, without having to break the bank to do it! And really, if you forego the actual mocha, and do it this way, you can't tell the difference in taste much at all, if at all! It's one way to save money, and still get a good coffee drink!
3-20-2010 @ 12:03PM
Slim said...
You think McDonalds is giving you more for less? You are so naive. That sausage is mistery meat of the worst kind, and the egg... are you sure it is really egg? The muffin is so synthetic it barely qualifies as food.
Your taste buds might also not be sensitive to different types of coffee, if you think cheap coffee is good.
Yes, Starbucks is expensive. Still, sometimes is the only acceptable option.
3-20-2010 @ 12:04PM
Slim said...
Sorry, I mentioned eggs for the sausage McMuffin, my mistake, because the atuhor is mentioning cheese... but that cheese is also a highly processed, very low quality cheese that contains who knows what (fillers, preservatives, etc.) Yikes.
3-20-2010 @ 1:08PM
sportygrly said...
I hardly ever go to Starbucks anymore. I can get better coffee (i.e., not burnt tasting) from other coffee vendors that offer similar drinks and better choices of food. And their oatmeal?? It's nothing more than like buy a box of the Quaker Oats packets at the grocery store. Except that you're paying a LOT more at Starbucks for a very small portion.
3-20-2010 @ 1:16PM
greg said...
Starbucks, IHOP, Denny's, Dunkin Doughnuts, Caribou Coffee all mentioned in prior comments. The BEST coffee and food is right in my own kitchen and I don't have to tip anyone, drive there, be disappointed, stand in line go thru a drive thru. Cmon America wake up and smell the coffee.
3-20-2010 @ 1:37PM
gobluespartyon said...
I sometimes go into starbucks and order a drink in B&N haven't done it is while I get 10% off B&N membership card so thats a good deal. Haven't tryed there treats they do look good since I have treats at home I don't ever buy the treats maybe someday.
3-20-2010 @ 2:30PM
SBYES said...
Why do peole who are SB haters even comment on here! Go to the dennys sight then or dunkin' donughts!
I Love starbucks! That lemon pound cake delish, their coffees I can afford it and will pay for them YUMYUM! I will never ever stop going to starbucks! I am an SB FAN!!!!!!!!!!!!!! Go SB!!!!!!!!!!!!!!!!!!!!!
3-20-2010 @ 2:36PM
treatisonme said...
some of you folk are weird! Babies I saty home for coffee awww so who the heck cares stay home no one wants you out! You is prolly ugly haha! and Brad comments about the coffee being too strong LOL man up Brad be a man and drink the strong coffee! What a bunch O'Dorks here! I no want strong ~I stay home~ what feeble minded people here DORKS!!!!!!!!!!!!!!!!! I can afford it I can go out of my home and I can treat myself My God LOSERS!
3-20-2010 @ 2:41PM
Samantha said...
I think people who pay for coffee outside their homes; unless dining out, are without question, idiots. I've gotten Starbucks several times when with my daughter who loves coffee outside of home. I don't see anything special about it; tried several varieties.
My mom made the best coffee in the world, using Yuban & everybody always stopped by her home for a cup or two, because it was so outstanding. She didn't charge them a cent.
There are specialty coffee's available to brew at home. Try some of them & save yourselves your life savings.
3-20-2010 @ 2:41PM
dweeberspeppers said...
I like coffee and I like Tea and I like StarBucks and Starbucks likes me!
3-20-2010 @ 2:49PM
Clue said...
Yeah, if they weren't making money on it, they would go bankrupt! Wash it down with a five dollar cup of their coffee, now that's a real rip-off!
3-20-2010 @ 3:52PM
KatieCouric'sNemesis said...
A box of supermarket brand waffles costs about $1.75 for ten.
Starschmuck's just makes money off people who are interested in snob value.
I bought a Starschmuck's coffee a few weeks ago. All I do is clean the cup and put in my own coffee, costing about 25 cents a Venti serving. I can spend that money on something far more interesting--like my family.