Ethanol Dominoes: Starbucks Edition
by Lloyd Alter, Toronto on 07.24.07
We keep crying in our tequila and beer about what the biofuels craze is doing to our food prices and milk prices; Now we can't even get a cup of coffee without being hit by it. Environmental Economist Tim Haab calls them all "ethanol dominoes".
" Starbucks Corp will raise U.S. prices on coffee, lattes and other drinks by an average of 9 cents a cup next week to help offset soaring costs for milk and other commodities, a spokesman said on Monday. The widely anticipated move marks Starbucks' second price increase in less than a year and comes a month after the coffee shop chain's chief financial officer warned it would be "very challenging" for Starbucks to meet the high end of its 2007 earnings forecast, in part because of rising dairy prices."
One commenter on his site noted that drinkers of black coffee should get a discount. ::Environmental Economics
Boy, it would be a shame if Starbucks didn't make a huge profit.
What happened to businesses enduring hardship instead of passing all to the costs onto the customer.
Merchants in the past would resist raising prices to keep customers happy. They would sell at a very small profit when temporary price changes hit.
Today, the Oil companies, coffee companies, and restaurants are screwing the customer for thier own gain. When people are struggling to survive, the big business should make some sacrifice too.