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Starbucks (SBUX) catering to kids?

"Duh, [this Italian roast] might stunt my growth. I wanna be 5'10" like Cindy Crawford." -- Alicia Silverstone as Cher Horowitz, Clueless (1995)

The world's medical experts have never really suggested that coffee, with its high caffeine levels and its tendency to be laced with sugar and fatty milk products, is a good beverage for the still-growing population. But kids today are a growing consumer sect, so what's a java-centric shop like Starbucks (NASDAQ: SBUX) to do? Consider offering "alternative beverages" to the under-13 bunch.

A recent MSNBC article notes that while Starbucks has traditionally maintained that it doesn't market its products to children, some locations are revising their stance. Brandon Borman, a spokesman for the Seattle-based firm, told MSNBC that while there will not be specific campaigns aimed at children, there are talks about adding child-friendly beverages to the existing menus. "We need to be realistic about who comes into our stores," Bormon noted, "we want to make sure that we have products that are appropriate to that age group."

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Starbucks sued over coupon -- the blogosphere reacts

StarbucksAt Starbucks Gossip bloggers and commentators are talking about Friday's $114 million suit against Starbucks (SBUX) for the coupon debacle, which my colleague Sarah Gilbert reported on right here. A class-action suit was probably inevitable given our litigious age and the company's profile. Starbucks has given the fact that the coupons were alterted and distributed beyond their intended scope, and the reason for cancelling the promotion.

Comments at Starbucks Gossip are running about 2/3rds against the suit (by my very rough estimate) last time I checked. Some posters sound bemused over the whole mess, while others are outraged. P. Scranton said, "No wonder attorneys are held in such low esteem." Some people did write in to express feeling "betrayed" by Starbucks -- angry that a large company should get away with pulling back this freebie without some sort of penalty. Starbucks (some consumers seem to feel, anyway) picked up the ball and went home after too many people decided to play. JavaGrrl, who identifies herself as a longtime employee, says that the company was "embarrassed" (all caps) by the entire episode. For me, that embarrassment is punishment enough. I don't want to see a suit go forward, the stock fall, and the costs passed on to the consumer.

The comment that had the funniest, and to me, the most sensible take on the entire matter was this from DeusX: "I think I will be suing my ex-gf of ten years ago, I have a 'good for one free backrub' coupon signed by her with no expiration date."

Starbucks' reports 5% sales increase for August - blip or trend?

starbucks in augustStarbucks (SBUX) retail sales disappointed in July, and analysts predicted August increases to be somewhere in the 4-5% range. Most predicted closer to 4%.

Today Starbucks reported retails revenue of $617M for August -- a not-so-shabby 5% increase. It's a little early to tell whether we can identify a tightening (or loosening) of consumer budgets affecting discretionary spending. Analysts are waiting and watching SBUX, which, I see from my googling daily, is one very popular benchmark that economists and financial analyst love to use to gauge this kind of spending. Starbucks maintained its "buy" earlier this week from Dan Geiman of McAdams Wright Ragen.

Starbucks CFO complains the street overemphasizing service slowdown

CrowdStarbucks (SBUX) CFO Michael Casey in Wednesday's conference call: While this [service slowdown] is an issue, and we're working on it, and we're going to get it solved, it perhaps doesn't quite deserve the focus it's been getting" from Wall Street. [via Forbes.com]. Fair enough, but controlling what the Street chooses to focus on is not easy. I'm surprised at that the play that that issue has received, I can only assume that there must be some value to holding it as a concern, because I haven't noticed lines increasing myself. Or am I already so indoctrinated I don't notice time spend in line any more (as we say out here in the sticks-- or on line as they say in NYC). It seems upper management is aware of the situation -- I almost wrote, hyper-aware, but seeing that it is such an issue for many analysts, I suppose they can't be overly concerned about it.

Come to think of it, I've walked out of joints with slow service plenty.

Continue reading Starbucks CFO complains the street overemphasizing service slowdown

Baristas getting chunkier?

Frappucinos have more fat than and a big mac, okay?

Last week, Reuters reported that, the Center for Science in the Public Interest -- having just launching a suit against KFC for frying chicken with trans fat -- now plans  "to campaign against the global cafe chain Starbucks [SBUX] because of the increased risk of obesity, heart disease and cancer associated with high-calorie, high-fat products it sells."

Starbucks is a high-profile company that has come under fire from advocacy groups in the past, leading to the company making changes in, for example, its policies toward coffee growers and an increase in the amount of fair trade coffee it buys. Good products can come from criticism. In fact, in the same Reuters piece, a spokesman said the company "is 'actively researching' alternatives to high-fat products. The company said it plans to eliminate trans fat from seasonal baked goods -- but not necessarily other products -- by this fall. "

Continue reading Baristas getting chunkier?

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Last updated: November 26, 2009: 12:43 AM

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