Monday, April 28, 2008

No Coffee? Blame the Housing Market

Starbucks is blaming their lackluster sales on the rotting housing mess in California and Florida. No, it's not because there's a Starbucks on every street corner in the United States and abroad. It's because of housing.

Excuse me, but how many people do you know who would give up their first born before sacrificing their cup of coffee in order to save money? I mean, coffee is vital. You can't wake up without it. You can't work without it. You can't go to a meeting without it. You can't drive home without it. You can't unwind after a revved up day without decaf. Going broke is no reason to give up a $3 cup of coffee.

Sorry, but the ole' "let's blame housing values for yet another economic woe" will never fly when it comes to America's favorite addiction.

Have you ever seen losing gamblers at a roulette table? They don't stand up and walk away when they run out of the change in their pockets. They pull out the credit cards, equity lines, checkbooks from everyone they've pilfered, jewelry that's been handed down through the family for hundreds of years, and their cars. The lack of money doesn't stop a gambler from his mission.

Same with coffee. Believe me. If you're anything like my husband and I (and our friends), you'll be living in the street--literally, on the asphalt--before you would dream of giving up your morning fix (we patronize coffee houses other than Starbucks, though).

So, what could be the real reason that Starbucks is losing customers?