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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (67330)	8/3/2006 2:13:23 PM
From: benwood	Read Replies (2) \| Respond to of 110194

Russ, I was in the Starbucks in Leavenworth, WA a couple weeks ago when there was a huge line. It was 98 degrees out, and a gaggle of about 10 teenaged girls all ordered frappacino drinks in front of me, so I thought the wait would be forever... What struck me, however, was just how fast those drinks where delivered. I'd never seen drinks, hot or cold, come off the line that quickly. I don't know if they just had some in-store system that worked really well or what, but it doesn't jive with that press release. Could be that because they are situated in a high heat summer location that they just have better makers and can crank them out. The were staffed up for the rush which helped. My wait turned out to be just 4 minutes. I think SBUX will prove more resistant to recession that some luxuries because you can treat yourself for $3, $2 if you switch to Americanos or drip. But I do think they will suffer, as people will get cheaper drinks or just buy beans and start making their own java in their office, etc. But people really want to get out of their offices and cars for a break and so that appeal will remain, which is why they've continued to grow so fast for many years. But people will want to make their car and mortgage payments even more. I know people who don't have that much money who spend over $250/month at Starbucks... something will have to give in their lives. So far, it's just common financial sense that has given way.