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The margins are so good on coffee (its a morning ritual, its a drug, and so on), and yet the employees are still driven to unionize -- why? Is it because all pr
by houseatrielah 3y ago
The margins are so good on coffee (its a morning ritual, its a drug, and so on), and yet the employees are still driven to unionize -- why? Is it because all profits accrue to shareholders? Are there other reasonable explanations?
- allset_ 3y ago> Is it because all profits accrue to shareholders? Yeah.
- bombcar 3y agoI’d not be surprised if most profits end up going to captured rents. Always raise rents until just about when Starbucks would leave.
- allset_ 3y agoIf it goes to rent, it's not profit by definition. That's just a cost, same as any other. Starbucks made 32B in 2022 with a profit of almost 22B.
- 8note 3y agoI wouldn't doubt that Starbucks is paying rent to Starbucks, and that is a tax evasion scam
- sgerenser 3y agoNope, almost all Starbucks locations (like most restaurants and retail establishments) are leased from commercial real estate holding companies and investors.
- somedude895 3y agoThat 22B is gross profit and highly misleading in this context, since it excludes fixed costs like rents and salaries and also taxes. Net profit was 3.3B in 2022.
- bombcar 3y agoNet profit was $1 a drink or so, apparently.
- no1groyp 3y ago[dead]
- malfist 3y agoThere is no amount of money that you could give a billionaire to make them want to pay their employees more. There is no cap on wealth, nothing is ever enough for them. Aside from external forces they'd hire as few people as possible and as cheaply as possible
- deleted 3y ago[deleted]
- Gigachad 3y agoAre the margins that good? Sure the cost of the beans and milk is not that much, but the rent, wages, marketing, etc are super expensive.
- mock-possum 3y agoWhat relevance are the margins? Baristas don’t see any of that profit. They get paid hourly minimum wage. They work for tips.
- csomar 3y agoThe margins are not good on coffee. The margin are good for starbucks because of the brand and the franchise. There are almost no regulatory capture in the coffee business. You can go ahead and open your coffeeshop if you think it’s profitable.