What does “Starbucks” business contribute to the American economy?
- SteveLv 61 decade agoFavorite Answer
Starbucks coffee has become an indicator of the American economy.
As everybody probably has already been aware of that, Starbucks is by far the most
profitable coffee chain stores in the world, and it has brought a lot of money for American people via tax payment as well.
For many Americans—at least those of us addicted to the national drugs of petroleum, nicotine, and caffeine—life is increasingly unaffordable.
The interaction of inflation and addiction makes for fascinating economic case studies. But Starbucks may be luckier than the cigarette makers. It is in the happy position of marketing coffee, a substance that, unlike gasoline, is physically addictive, and that, unlike tobacco, governments don't want to regulate.
For Starbucks to publicly announce its price increase is either an act of hubris or supreme confidence. Some people come to Starbucks for the bonhomie, others for the soothing music, still others for the wi-fi access. But pretty much all come for the liquid caffeine. And when a retailer loudly raises the price of its main product, it runs the risk of pricing some consumers out.
What's more, Starbucks already has a reputation for having the most expensive coffee in the marketplace. When I left Moneybox's New York headquarters to conduct research at the closest Starbucks (a block away), I passed a half-dozen other coffee vendors. There's the guy with the cart who sells the little Greek diner cups for 50 cents; the deli with the scalding 75-cent generic joe and the thin paper cup; the convenience store with $1.00 faux gourmet stuff; and Cosi, where a latte costs $3.59. Only after running this gantlet could I enter Starbucks, where a java chip Frappuccino runs $4.75.
So we can reasonablely assume that as long as this company continues to make money, the American economy will be good due to its tax from Starbucks.
- 1 decade ago
Starbucks is the most famous coffee company.
They also are the associated company.
So they are important to American economySource(s): Me