Starbucks (SBUX) finally admitted what every man, woman, and child over 13-years-old already knows–no one in his right mind will pay more than $1 for a cup of coffee no matter what a barrista puts in it. That goes for 18-year-old single malt.
The company’s admission is also a sign that founder and CEO Howard Schultz can do nothing to save Starbucks. The model of expensive drinks does not marry well with a deep recession.
In the Starbucks 10-K, the firm stated "As a retailer that is dependent upon consumer discretionary spending, the Company expects to face an extremely challenging fiscal 2009 because of these economic conditions."
The coffee company also hinted at awful same-store sales, layoffs, and a world ruled by four-legged beasts.
So much for the economic recovery happening in 2009.
Douglas A. McIntyre