More From the Latte Index
By Mary Kane
08/13/2008
09:16AM
An unofficial measure of what's going on with the economy is the Latte Index, or trends in discretionary spending when it comes to Starbucks. When people cut back on pricey, frothy coffee drinks they probably didn't need in the first place, the theory goes, it shows they're taking steps to curb their spending. And less consumer spending means slower economic growth.
With Starbucks already closing 600 stores due to lower sales, it's fair to say the Latte Index carries some weight. But now The Big Picture spots another Latte Index-style trend: Discounts at Starbucks:
As you may have heard, Starbucks has canned their DVDs and CDs. At a recent visit, I picked up Juno (which I have been meaning to see), and for Mrs. Big Picture I grabbed The Kite Runner -- for $7.95 each. They also had the new James Hunter CD (Official site, Amazon, NPR interview) and the latest John Mellencamp disc (Official site, Amazon) were also $8. But the big thing that caught my eye was their $2 special. Bring your receipt in from any purchase in the am, and after 2pm any Grande Cold drink is just $2. Value maximizers may want to go for the Iced Frappucino Double Chocolaty Chip Frappuccino Crème at $4.80 but it weighs in at 510 calories. Or, the Java Chip Frappuccino is 460 calories. I went for the Iced Caramel Macchiato, which cost less, but is practically dietetic at 230 calories.
I cannot recall Starbucks being this promotional since . . . well, ever.
The Big Picture wonders if anyone else is seeing new promotional discounts. The $2 special - a new economic indicator?
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© 2007 The Washington Independent
Comments:
Posted 08/13/2008 11:45am with
Your Latte Index is stupid.
I purchased an expresso machine while in Italy in the early 1980’s and when I returned to the US all I had to do was find a shop that sold fresh ground coffee for an expresso machine. And this was before Starbucks! I’m in Germany now and I have a 3 cup electric expresso coffee pot and still enjoy a fresh latte every morning.
Point is, if you really like a specific beverage, it doesn’t take much effort to learn how to make it yourself. Are people really so stupid that they can’t take care of their own wants, needs and desires by themselves; they have to have someone else cater to their needs?
Posted 08/15/2008 01:59pm with
Writer tahut is missing the point. The question is whether a Starbucks discount is a sign of a significant economic trend. Perhaps she’s being half (or wholly) facetious but it is an interesting reaction to a decline in discretionary spending.