Are we really cutting back? Honestly, I don't think so. Somebody out there is sipping lots of lattes. Just look at the recent financial reports percolating from Starbucks, a publicly traded company on Nasdaq (SBUX is the ticker symbol).
Revenue (sales of coffee and other Starbucks merchandise) is up big time, according to company report.
For the 52 weeks ended October 1, 2006, consolidated net revenues were $7.8 billion, an increase of 22 percent from consolidated net revenues of $6.4 billion for the same period in fiscal 2005. Comparable store sales increased seven percent for the 52 weeks ended October 1, 2006, compared to the same period ended October 2, 2005, marking the Company’s 15th consecutive year of five percent or greater comparable store sales growth.--Starbucks company report
Translation: Somewhere, somehow lots of somebodies are buying lots of take-out or sip-in-store coffee.
The robust flavor of the global coffee business has prompted Starbucks to increase its operations in China through a major buyout.
"We are now poised to expand rapidly in this important region two years before the 2008 Beijing Olympics.” said Jinlong Wang, president, Starbucks Greater China.
Personally, I think Starbucks is a quality company, with an admirable community service program and decent benefits packages for its employees. I even hang out at Starbucks cafes as an occasional treat and I’m a fan of their new music & coffee high-tech stores.
But every-now-and-then treats are one thing; I don’t need to be a regular contributor to the Starbucks bean-counting grind of $7.8 billion in revenue over the latest 12-month period.
I’ve got my own bottom-line issues to worry about. I’ll brew my own coffee, with a few weekend lattes for good behavior. Or maybe a shot of espresso after work as a little bonus or when I'm stressed out and need a fix. Or maybe, I'll just stop grinding my money.