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dd74 dd74 is offline
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Join Date: May 2002
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Quote:
Originally Posted by Wayne at Pelican Parts View Post
The McDonald's iced coffee drinks are pretty darn good...
+1. They are good. McDonald's is really doing well with their new image. I predicted this year their coffee drinks would eat deeply into Starbucks.

Quote:
Originally Posted by Wayne at Pelican Parts View Post
I can't help but think this is a losing strategy. Open a whole bunch of stores, and then just close them when the economy is soft? The startup costs for opening stores is huge. I wonder what would happen if they lowered prices in some of these troubled stores? I think they stick to a standard, uniform pricing model across the country, which in Business 101, is really not the way to do it.

Just thinking...

-Wayne
Remember about four or five months ago when every Starbucks in the country (maybe the world), closed for a day? What Starbucks did that day was retrain their employees. CEO Schultz and the board decided to not lower prices, but rather increase the shots of espresso they put in their coffee to level off a growing lack of consumer confidence in Starbucks' coffee drinks. It hasn't worked so far. Their drinks are just stronger, but not necessarily better. And their prices have increased due to -- yes -- speculators - the same, in fact, who've jacked up fuel prices.

And their food sucks (except for the cookies). I wouldn't touch one of those wilted-looking Starbucks salads even if they paid me to eat it. Anything at McDonald's will at least be fresher.

This reminds me of what did in the Warner Bros. Studio Stores. Massive expansion with massive saturation of mediocre product that had no imagination.

Stuff like that kills a franchise every time.
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Old 07-18-2008, 11:12 PM
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