Starbucks $3.65 Cup of Coffee Is Too Expensive
Briefly

Starbucks $3.65 Cup of Coffee Is Too Expensive
"The cost of a Starbucks Corp. ( NASDAQ: SBUX) "short" cup of coffee, which is 8 fl oz, is $3.65. It comes in four versions: Blonde Roast - Sunsera, Pike Place Roast, Featured Dark Roast, and Decaf Pike Place Roast. Each has five calories. No matter what else Starbucks does to improve its tattered fortunes, it needs to charge less. The price of a cup of coffee brewed at home is $0.40. Factoring in electricity and water adds a few pennies. A coffee brewing machine costs as little as $15. The value of that machine per cup can be measured over years and thousands of cups."
"Starbucks CEO Brian Niccol has transformed the company into a new entity, he says. He has closed hundreds of stores and fired the people who work in them. He has laid off over 1,000 corporate staff. The latest slogan for his plans is "Project Bloom." He also had a "Back to Starbucks" plan. Niccol created a uniform for baristas. He established a process that enables Starbucks products to reach customers more quickly. He has made the menu smaller."
A short brewed Starbucks coffee (8 fl oz) costs $3.65 and is offered in multiple roast options, each with five calories. Brewing coffee at home costs about $0.40 per cup, with electricity and water adding only a few pennies; a basic coffee machine can cost as little as $15 and amortizes to pennies per cup over thousands of uses. Starbucks K‑Cup pods run roughly $1.00 per cup. CEO Brian Niccol has closed hundreds of stores, laid off store and over 1,000 corporate employees, rolled out "Project Bloom," uniforms, faster processes, and a smaller menu, yet company performance and stock have lagged.
Read at 24/7 Wall St.
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