Starbucks - the changing Coffee Market

[Terrel L. Shields]

Question - how many cups of coffee can you brew from a pound of beans?

 

[Fernando]

Do you think coffee houses like Starbucks may not be good investment?
I'm asking because there's this coffee franchise property for sale and cap rate seems good.

 

[Surf Cat]

Do you think coffee houses like Starbucks may not be good investment?
I'm asking because there's this coffee franchise property for sale and cap rate seems good.

Uh Oh..... Fernando the barista....

 

[KHS445]

Do you think coffee houses like Starbucks may not be good investment?
I'm asking because there's this coffee franchise property for sale and cap rate seems good.

What is the cap rate being offered?
What are the lease terms?

 

[Terrel L. Shields]

I'm asking because there's this coffee franchise property for sale and cap rate seems good.

There are alternatives to Starbucks which seems to be in decline.

Best Coffee Franchises If You Love Coffee

Do you love coffee and want to start a local shop? Discover the best coffee franchises to fuel your passion.

www.beansandbrews.com

 

[Elliott]

My mother, who always took her coffee black, was that Starbucks burnt their beans. If that was to extend their yield, I don't know. I was over at the dog park this afternoon and when I threw stuff in the trash there were lots of Starbuck cups. I like K-cups, don't like to spend 5 to 10 minutes in line, and don't like to spend $7+ for a so-so cup of coffee.

 

[Mark K]

There's been a lot of freestanding coffee shops being built in expensive locations around here. Not Sbux but other independent. Paying $500K for 1/2 ac. and another $1M +/- on the building. You have to sell a lot of coffee to pay for the building and workers.

There's a pretty good size church locally that put a drive-thru coffee shop on one end of their building. They're doing very well.

 

[Joe Flacco]

A one-pound bag lasts me about 2 weeks. 32 ounces of coffee per day.

So that is about 56 cups (8oz) for a one-pound bag.

 

[Gobears81]

If we ever go into a recession, seems that trading down from $7/ cup coffee at Starbucks to Folgers would be an easy switch for some.

Chipotle used to have a line out of the door, but they added stores in locations that they wouldn't have previously, and now when you go for lunch, it isn't busy. Starbucks seemed to follow a similar type of growth pattern, at least around here. Starbucks and a smaller coffee franchise both constructed new stores right next to each other in my town and opened a couple months apart. Then Dunkin decided to open in that same block about six months later. Hard to believe that wouldn't be the peak.

 

[Joe Flacco]

Starbucks no longer has the customers that want to hang out in the store. Around here, the people that hang out in the store go to Tatte or Tous Le Jour.