Deconstructing Starbucks
- Apr 18, 2016
- 1 min read
As I sit in my friendly neighborhood Starbucks drinking my $1.85 venti green tea, I quickly wonder why would I pay $1.85 for a cup of tea when I have the exact same tea at home. Is it that hard to heat up water?
In fact, the most expensive drink here is a holiday-spirited Peppermint Mocha at $4.40. That combo of flavors doesn't really interest me. Is it really worth that? So why is there a continuous stream of soccer moms, high school students, and casual dressed business men buying their $3.50 soy lattes? I'm sure it's not the coffee and definitely not the soy. The funky chairs and music and nice barristas add some value, but the people come for the CUPS. Holding a Starbucks cup makes you look and feel cool! Who can put a price on cool? Starbucks! 29 cents for the coffee and soy milk... $3.21 for a cup of cool...
Well written and easy to digest, which is honestly rare for a topic like this one. You framed the trade-offs honestly, which is something plenty of posts conveniently skip. Some extra examples and notes live over at compoundfinances.com if you'd like to keep exploring.