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The Coffee Wars Heat Up: New Strategies to Jolt the Caffeine-Conscious Consumer
Knowledge Wharton ^ | April 19, 2006

Posted on 04/30/2006 7:02:03 AM PDT by SamAdams76

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It is said that coffee chains such as Starbucks and Dunkin Donuts spends more on a take-out coffee lid than the coffee itself that goes in the cup. The profit margin on coffee is extremely high. Consider that with a $5 bag of coffee beans at home, you can make about 100 cups of coffee with it. That would be almost $200 in revenue if you were to own a coffee shop (and you would probably pay much less for the beans).
1 posted on 04/30/2006 7:02:05 AM PDT by SamAdams76
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To: SamAdams76
McDonald's likewise has trotted out a new line of upscale coffee, co-branded with Newman's Own food company.

For what it's worth, I HATE McDonald's new blend. When I was driving, I used to get their coffee to keep my alertness up. It used to be smooth, kind of bland, and just the right kick. The new stuff is fake-gourmet. At the gourmet places, you get to choose the blend....duhhh.

Starbucks, meanwhile, has come a long way. You can now go in there, order an extra large, smooth, coffee, from someone who is friendly and speaks English, cheaper than Dunkin'. They even don't care if you just call it coffee anymore.

Dunkin' franchises around here, meanwhile, have created environments where citizens don't want to work, then "had" to hire Central Americans. Also, they've gotten greedy with the cost of a cup.

The article is right on. I'm thinking with gas prices way up, people are going to be tempted to find a cheaper cup of coffee.

2 posted on 04/30/2006 7:10:59 AM PDT by grania ("Won't get fooled again")
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To: SamAdams76
Starbucks sells its lattes for about $3.50, depending on the location....

Somw people whine about the price of gasoline, yet don't blink an eye spending $3.50 for some caffeinated water......

3 posted on 04/30/2006 7:14:25 AM PDT by ScreamingFist (Annihilation - The result of underestimating your enemies. NRA)
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To: SamAdams76

Walmart's 100% Arabica coffee tins go for $2.18. Very good coffee.


4 posted on 04/30/2006 7:16:02 AM PDT by luvbach1 (More true now than ever: Near the belly of the beast in San Diego)
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To: grania
You can now go in there, order an extra large, smooth, coffee, from someone who is friendly and speaks English...

I wish their coffee menu was written in English. You need a doctorate in Coffee-speak just to understand it.

5 posted on 04/30/2006 7:16:38 AM PDT by rickmichaels
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To: grania
I'll have to disagree with you on McDonald's new blend. I think it's pretty good. Then again, I've developed a taste for the richer blends of coffee over the years and the old McDonald's coffee always reminded me of typical "office" coffee, made from a cheap coffee machine that never got cleaned out.

When I was in Alabama last week, I went to McDonalds because there was no DD or Starbucks around and was pleasantly surprised by the quality of this new blend.

As for Starbucks, you make a good point. Starbucks has a reputation for very expensive coffee but that only applies to their espresso drinks. If you get just a cup of regular coffee, it's no more expensive than just about anywhere else. However, I personally find Starbucks coffee to be too strong and bitter for my taste.

6 posted on 04/30/2006 7:18:13 AM PDT by SamAdams76 (I think Randy Travis must be paying his bills on home computer by now)
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To: SamAdams76
When the NASDAQ took a brutal beating in 2000, Starbux kept climbing, and still does.


7 posted on 04/30/2006 7:18:46 AM PDT by jdm (Always looking for an opportunity to post a nasty Helen Thomas pic!)
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To: luvbach1

Pre-ground coffee is crap. Spend 20 bucks on a grinder and buy whole beans. The difference is like night and day. You'll wonder why you ever bought (and drank) ground coffee in the first place. And don't get me started on the instant stuff (maybe except for Nestle Rich Blend).


8 posted on 04/30/2006 7:19:40 AM PDT by rickmichaels
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To: SamAdams76

Take a No-Doz. It's cheaper and just as effective. Wash it down with some tap water.



9 posted on 04/30/2006 7:19:43 AM PDT by Right Wing Assault ("..this administration is planning a 'Right Wing Assault' on values and ideals.." - John Kerry)
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To: grania
Great post and comments. My wife and I have been pressing our coffee every morning since we learned how good pressed coffee is (about 3 years ago). We spent 25 bucks on a press, about 6 bucks each on a travel mug and 5 bucks a lbs. on coffee which lasts a week and a half. We love it, save a ton of money and actually have hooked a bunch of our friends on the same system after they tasted pressed coffee.

Just my rambling two cents. :o)

10 posted on 04/30/2006 7:20:46 AM PDT by IllumiNaughtyByNature (My Pug is On Her War Footing)
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To: ScreamingFist
whine about the price of gasoline, yet don't blink an eye spending $3.50 for some caffeinated water......

I'm sure many complain about gas prices while they are in line buying their lattes too.

11 posted on 04/30/2006 7:21:36 AM PDT by BallyBill (Serial Hit-N-Run poster)
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To: grania

I like McDonald's new coffee. But that's what makes a horse-race, I guess!

My sister was on a flight about ten years ago with a coffee salesman who told her that people in New York put in literally twice as much coffee per pot as people in other parts of the country. That's probably changed now, not because New Yorkers use less, but because other folks are using more. Interesting how tastes change over the years.


12 posted on 04/30/2006 7:25:30 AM PDT by livius
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To: rickmichaels
Pre-ground coffee is crap.

I didn't say it was Walmart's pre-ground was excellent, but IMO very good.

13 posted on 04/30/2006 7:27:53 AM PDT by luvbach1 (More true now than ever: Near the belly of the beast in San Diego)
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To: SamAdams76

Well, we used to like Starbucks, until we were given a Saeco Coffee/Espresso machine, as a gift.

Now we just wait till we get home to have a cup of coffee because none of the coffee shops coffee, can compare.

The machine was a gift (not the high end of their machines, but still pricey), and I thought I'd never spend that kind of money on a machine myself...but, after drinking the coffee (which is excellent, and all our guests think so too), and realizing the money saved by not drinking coffee away from home, I might reconsider.


14 posted on 04/30/2006 7:28:17 AM PDT by dawn53
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To: Right Wing Assault
Take a No-Doz. It's cheaper and just as effective. Wash it down with some tap water.

Yuk. There is an experience with a good cup of coffee that cannot replicate your cheaper No-Doz solution for staying alert. Just like a good glass or wine, a quality glass of beer or a tumbler of aged bourbon, the mild intoxicating effect of the "drug" (alcohol) is secondary to the experience of enjoying the beverage. I suppose instead of the bourbon, you could mix some isoprophl alcohol with some tap water and get the same effect (of intoxication) for cheaper but you take away the entire experience of savoring a fine drink and take away most of the purpose.

15 posted on 04/30/2006 7:28:37 AM PDT by SamAdams76 (I think Randy Travis must be paying his bills on home computer by now)
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To: luvbach1

Correction: I didn't say Walmart's pre-ground was excellent, but IMO very good. Sorry.


16 posted on 04/30/2006 7:29:15 AM PDT by luvbach1 (More true now than ever: Near the belly of the beast in San Diego)
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To: grania
I had to quit caffeine about 3 years ago, so I've become used to McDonalds decaf. I thought their new stuff was pretty good. You're saying their good stuff isn't anymore? That's too bad. I used to their coffee.

If you use the drive-through, order a "senior" cup. I don't know if they do it everywhere, but around here it's only $.50, and is just the right size.

17 posted on 04/30/2006 7:30:16 AM PDT by Slump Tester ( What if I'm pregnant Teddy? Errr-ahh Calm down Mary Jo, we'll cross that bridge when we come to it)
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To: SamAdams76
You KNOW that this entire coffee thing is a total con$piracy by the GOP, Bush, Halliburton, fanatic Muslims, evangelicals and Christians.....to hook us P.C.-fearing, minority-women-homo-bi-trans-sexual adoring, N.O.W./moveon.org member, Kerry/Kennedy/Dean worshipping intelligent folks.

< sarcasm >

Bottom line: Coffee TASTES good, especially when I add the coffee to my cream and sugar. It gives the caffeine JOLT. It's legal, moral and innocent.
It only "costs" 2 WW points -- zowie!!!!

I didn't start drinking coffee until I lived in Saudi Arabia, working for Saudi ARAMCO. Those Muslim Saudis got me hooked on coffee. They all drank American coffee; they said it tasted the best. Harhar.

18 posted on 04/30/2006 7:32:20 AM PDT by starfish923 (Socrates: It's never right to do wrong.)
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To: starfish923

I drink as I write.

19 posted on 04/30/2006 7:33:40 AM PDT by starfish923 (Socrates: It's never right to do wrong.)
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To: Slump Tester
If you use the drive-through, order a "senior" cup. I don't know if they do it everywhere, but around here it's only $.50, and is just the right size.

Hmmm, just what is the "right size" for a senior?
For $.50 it can't be too big.

20 posted on 04/30/2006 7:35:00 AM PDT by starfish923 (Socrates: It's never right to do wrong.)
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