by rose-colored-coolaid » Sun Apr 27, 2008 8:53 am
I don't think it's ever been as much about the coffee as people seem to think. The real reason Starbucks could charge $3 for a cup and McDs was charging $1 might have been the atmosphere.
When I enter a Starbucks, it feels very relaxing. Assuming the line isn't too long, I feel like I can get a drink, sit down and chat or read a book or something. Compared to most retail outlets, it's just a couple notches up.
When I enter a McDonalds, I have no such feelings. The restaurants usually feel kind of chintzy. The yellow and red coloring is garish. The strong smell of fried food is overwhelming. It's just not a nice experience.
That said, of course a luxury item ($3 coffee) marketed at the middle class will suffer during recessions. Starbucks can survive and do well, they just need to use this opportunity to reposition themselves a little bit.
Just my 2 cents.