I've recently started roasting my own beans and can tell you
that even at my small level there is a reasonable profit to be made
just on the roasting of beans. I haven't looked into SBUX and their
variable cost, but have to imagine that labor (plus all the things
that come with labor) is one of their highest cost areas.
One point on their pricing is that, as positive as falling bean
prices may seem, they -- like most businesses -- have a lot of
things inflating into a slowing consumption environment.
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Coffee amounts to less than
Posted by a_l_ on 18th of Jan 2016 at 11:56 pm
Coffee amounts to less than 10% of Starbucks operating costs. Higher cost items include: real estate, labor, health care & milk.
I've recently started roasting my
Posted by pinguin on 19th of Jan 2016 at 08:36 am
I've recently started roasting my own beans and can tell you that even at my small level there is a reasonable profit to be made just on the roasting of beans. I haven't looked into SBUX and their variable cost, but have to imagine that labor (plus all the things that come with labor) is one of their highest cost areas.
One point on their pricing
Posted by a_l_ on 19th of Jan 2016 at 09:40 am
One point on their pricing is that, as positive as falling bean prices may seem, they -- like most businesses -- have a lot of things inflating into a slowing consumption environment.