Falling Star… Bucks: Crisis in Suburbia

starbucksToday, Starbucks announced that its quarterly profit has dropped 28 percent. With the announcement of the drop in profits, Starbucks plan is to cut U.S. store openings and focus on the growing international market.

Do they think this is really the answer? Perhaps the best thing would be to share real estate with Wallgreens. Instead of building on opposite corners they could try the Yum! Brands model and coexist with each other. Caffeine and pills: the remedy for all the rich and famous.

Maybe they could try upgrading their pricing structure to include a free bakery item with the purchase of ten coffee items. For example, for every $40 you spend on coffee you could get a free scone.

Maybe another option is to offer free wifi to all the laptop carrying executives and college students. This would have to be better than the subscription model that is currently available.

I’m sure there would be some who would suggest to actually sell good coffee. The kind of coffee that doesn’t taste burnt or leave holes in your stomach.

That being said, does anybody really care that Starbucks profits fell 28 percent? Does the average American really care that they’re going to cut the opening of new stores? Probably not!

However, when I decide to stop in at Starbucks, they better not cut corners on my caramel macchiato or mocha frappuccino. I also hope they keep offering those $20 coffee cups that my mother-in-law gives me every year for Christmas.

Written by Jeff Springer

Jeff Spring is the Finance & Markets Editor at BusinessPundit.com. He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated.