How does one define health obsessed? Does it refer to one counting calories? Does it refer to avoiding red meat? One can define health conscious individuals in a myriad of ways. Can one define Starbucks core customer base as “health conscious?” The mindset those are using to portray that Starbucks will gain from voicing their calorie count suggest they can easily define their customer base. This ideology is flawed.
Today’s customer base for any national or multinational corporation is broad. Not everyone that is an organic connoisseur shops at Whole Foods and not everyone that shops at Starbucks is a health nut. Every individual that enters into the Walmart’s across the world does not make below the mean national salary. In a nutshell if you are defining your customer base in one word you are not appropriately defining your customer base. Those analysts that use a few words to define the customer base in lack the introspective approach to make any analysis. Refer to this article about how Starbucks will profit from calorie counts.
Do not get it twisted. The Starbucks gravy train has been a play I have supported for years. Starbucks has been part of our lifestyle for quite some time. In the recession they came out resiliently and will continue to do so as they go international. The global movement will likely be more challenging, but they have revolutionized beverages in the U.S. and there is no reason why they cannot do it abroad. Yes international has its challenges, but the ROI could be legendary.
At the end of the day Starbucks customers are proponents of the company for 50% brand and 50% taste buds. Starbucks is considered a treat, a splurge. That is why the company made it through the tough times. Instead of going out for lunch the business class of America went and grabbed that 2 dollar cup of Joe or that 4 dollar frappuccino. So as much as these so called analyst want to make the case for Starbucks hitting its stride due to a calorie count, its hitting its stride due to the overall company. Do not make a stock decisions on one element and do not forget the overall challenges of the company faces.
For those that like comparisons, just take a look at the trend-line for McDonald’s. It has been far from a straight run up since the implementation of calorie counts. Yes perhaps the Starbucks customer base varies a bit, but stating that a calorie count can change the business is more than foolish. A calorie count before the mandated time will likely boost Starbucks image, Though it will not outweigh the challenges internationally. Starbucks is a strong company that has mastered their model in the U.S. To have that continued success and return to investors, they need to be able to adjust and succeed with that model worldwide. The challenges globally are what needs to be focused on, not some idiotic calorie count.
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