Find the latest episode of "The Uncertain Hour" here. Listen

Don’t forget the coffee

Marketplace Staff Aug 30, 2006
HTML EMBED:
COPY

Don’t forget the coffee

Marketplace Staff Aug 30, 2006
HTML EMBED:
COPY

TEXT OF STORY

BRIAN WATT: Did you know Starbucks serves coffee? Well, the company has a new marketing plan that aims to remind you of just that. Jason Paur explains.


JASON PAUR: Starbucks is feeling the heat of summer as same-store sales failed to measure up to expectations in the most recent quarter.

Starbuck’s is facing increasing competition from McDonalds and Dunkin’ Donuts in the premium coffee market, but investment analyst Don Gher says one likely culprit for sagging sales is Starbucks’ focus on juice blends and other cold drinks this summer.

GHER: . . . And those led to longer lines. As people saw the longer lines, they decided not to stay in the stores and went elsewhere. Secondly, there could well have been some sort of an economic impact from the effects of higher gasoline prices.

Gher says with cooler weather on the way, the company needs to repeat former growth rates to keep investors happy in the coming quarter.

I’m Jason Paur for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.