Posts Tagged ‘starbucks’

Starbucks stuck in some costly Irish leases

November 24, 2009

Starbucks signed 20 year leases for premises in Ranelagh, Dalkey and Tallaght but it is now having second thoughts about running coffee outlets in these locations.  Oh dear, even Starbucks got sucked into the dizzy Irish property market and is now licking its wounds.

In Dalkey the rent per year is euro 110,000.  That’s euro 300 per day for 365 days, ie a heck of a lot of coffees just to pay the lease.  Ranelagh is euro 131,622 and Tallagh Cross East is euro 155,000 per year.   That’s not including rates which vary between euro 15,300 per year in Dalkey to euro 23,905 in Tallaght.   As they say ‘wrong trousers, grommit’!!  Somebody didn’t run the numbers!

Of course Starbucks hastens to assure us that it is committed to the Irish market.  Good luck Starbucks!  As the marketing experts say, you need a mix of office workers, students and shoppers to make these outlets work and somehow I don’t think they’ll find these en masse in Dalkey whatever about the other locations.

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Starbucks and its instant coffee – VIA

February 23, 2009

Starbucks has started marketing its own brand of coffee – VIA which I find somewhat puzzling.   However, perhaps it is not so surprising that Starbucks wants a bit of the instant coffee action when you consider that about 80% of coffee consumed in this part of the world is instant and that the total instant coffee market generates about $17bn in sales.

The chain hasn’t been faring well over the past year and in January 2009 announced the loss of nearly 7000 jobs plus the closure of 300  more outlets.  According to a great article by Christopher Caldwell in the Financial Times lately, Starbucks is supposed to be a chain of expresso shops but in reality turns out a poor expresso and instead concentrates on producing an array of steamed milky concotions at superior prices.

A sachet of the instant coffee retails for about $1 which is far from cheap.  Christopher Caldwell rightly points out that Starbucks positioned itself in areas with high income, high population and high education but feels that the chain may be challenged in our current economic climate.

On a positive note for Starbucks,  as people find themselves out of work, they need to be cheered up and often end up at the coffee house.  Instant coffee or otherwise, this should be a ray of sunshine for Starbucks in what has been a rather bleak time for this company.  I am still happy that my town still has an array of private coffee shops rather than endless chains.

Starbucks

April 29, 2008

An interesting article appeared in the papers this week about Starbucks. The share price has halved in the past year and the brand which has suffered from soaring commodity prices and the American downturn has been stumbling.

One young chap in New York commented that it’s too pricey, the coffee isn’t as good as it used to be and lastly it has become New York’s public rest rooms. Another chap pointed out that the only difference between a grande (medium) and a venti (large) coffee is the extra milk but no extra coffee.

I am a staunch advocate of the local cafe outlets so would not be overjoyed to see a Starbucks in Bandon. In this country we have come a long way from the watery instant coffee that used to be on offer to cafes that offer top class produce. Try The Early Bird, Urru and Seats in Bandon. You will certainly not be disappointed. Each of these cafes has a unique atmosphere and layout and each one offers great coffee. We don’t realize how lucky we are. We could have a high street full of chains all offering the same standard ‘school uniform like’ fair.

Many of our English guests here at Kilbrogan House have commented on how great it is to shop in a town like Bandon where there are so many independent stores. Lets keep it that way! Who wants to sample the same thing everywhere we go.