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Sg9018
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Post Number: 263
Registered: 10-2006
Posted on Saturday, February 07, 2009 - 2:08 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Coffee shops help stimulate Detroit economy
http://www.detnews.com/apps/pb cs.dll/article?AID=/20090207/B IZ/902070342/1001
The artice in the Detroit News is about the growing choices of independent and franchise operations in downtown. According to the story, Detroiters have more choices than ever before.
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Hpgrmln
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Post Number: 657
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Posted on Saturday, February 07, 2009 - 3:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yet Starbucks is continuing to close locations. Are any more in the area scheduled to close? The Millender location is gone, and the Marriott/Rencen store is no longer open on weekends.
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Texorama
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Posted on Saturday, February 07, 2009 - 11:15 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Noticed that the new coffee house in the Book-Cadillac is open as well.
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Sg9018
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Posted on Sunday, February 08, 2009 - 1:43 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Hpgrmln,
Starbucks has problems nationwide. According to the story 18 stores are set to close.

I think it is very good that Detroit is getting more independent shops. The thead should continue.
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Vivadetroit
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Post Number: 161
Registered: 04-2008
Posted on Sunday, February 08, 2009 - 7:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

yay! Bring on the Tim Horton's! love their coffee and Timbits!! Heck, I can get a medium coffee and 10 timbits for less than a Venti coffee at Starbucks. You do the math on why they're not doing well.

Didn't Starbucks close 600 stores in the past few months?
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Parkguy
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Post Number: 360
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Posted on Sunday, February 08, 2009 - 8:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Starbucks just laid-off something like 1000 people at their headquarters, and they closed over 300 shops.
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Stosh
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Post Number: 23
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Posted on Sunday, February 08, 2009 - 9:01 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I was at Starbucks the other day. They changed their formulation on their coffee lately? It seemed kind of weak.
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Fury13
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Posted on Sunday, February 08, 2009 - 9:47 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Tim Horton's coffee is watered down and weak. Yeah, it's less expensive. You get what you pay for.
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Big_baby_jebus
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Posted on Tuesday, February 10, 2009 - 2:56 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Mercury Bar is closing.

Guess they didn't get this memo.
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Birdie
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Posted on Tuesday, February 10, 2009 - 3:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

mercury bar is temporarily closed and probably re-opening very soon! someone on this very forum said they plan to re-open on friday!
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Professorscott
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Post Number: 1780
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Posted on Tuesday, February 10, 2009 - 3:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Tim Horton's is quite good, the one I go to. But I like diner coffee, which is what that is. Mercury Bar is likely to be closed for quite a while; the one partner quoted in the paper said they hope to reopen but didn't give a timeline. Since the problem as he put it is they lost $280 a day, I doubt they'll solve that by this Friday.

Starbucks relies on people being able and willing to spend fairly big dollars for coffee drinks, and that's an iffy business in a weak economy. Their stock has been slowly eroding in value the last couple years, starting well before the current economic crisis.

If you want to do upscale coffee drinks right now, you have to have something going for you. Charge fifty cents less than the guy down the street, or have good pastries, or something. We are in a supercompetitive enviroment right now.

I'm too simple for upscale coffee shops, myself, though I like that they exist. My ideal morning is a copy of the Free Press, a cup of hot coffee with some bacon and eggs, and other people in the place willing to argue politics. From that, as you can guess, I can have a lot of very good mornings in Detroit :-)
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Fury13
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Posted on Tuesday, February 10, 2009 - 3:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It costs less than $2 for a cup of plain coffee at Starbucks, Caribou, or Biggby (or Bean and Leaf, my favorite). That's not expensive, and it's real, robust, full-flavored coffee.
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Benfield
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Posted on Tuesday, February 10, 2009 - 3:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Now is the wrong time and Detroit is the wrong place in this economy to sell upscale "luxury" coffee. On top of the economic and social changes rocking every coffee seller, Detroit has the additional challenge of a rather small demographic of upscale coffee drinkers. Combine with Mercury's rather out of the way location and I think their previous strategy was maybe doable in 2006, but totally wrong for 2009.

quote:

Starbucks Plays Common Joe
Coffee Empire Seeks to Seem Less Expensive in Recession



By JANET ADAMY

Starbucks Corp., which built a coffee empire on its premium image, wants to convince customers that its drinks aren't that expensive.

The company said Monday that it's selling discounted pairings of coffee and breakfast food for $3.95, a type of promotion long used at fast-food chains. It's the first move in an aggressive campaign to counter the widespread perception that Starbucks is the home of the $4 cup of coffee.
[starbucks] Associated Press

The Seattle-based company is training its baristas to tell customers that the average price of a Starbucks beverage is less than $3, and that 90% of Starbucks drinks cost under $4.

The move shows how premium brands are trying to reposition themselves for a prolonged economic downturn.

"I strongly believe we are going to be in this environment for years," Howard Schultz, chief executive of Starbucks, said in an interview. "It is a reset of both economic and social behavior."

For Starbucks, the effort is also an attempt to fend off McDonald's Corp., which has been taking thinly veiled jabs at Starbucks' prices as it rolls out its own line of lattes, cappuccinos and mochas. So far, McDonald's local advertising for the drinks has included a billboard in Seattle with the message, "Four bucks is dumb."

Few companies embody the consumer spending boom of the 1990s and 2000s like Starbucks. Mr. Schultz helped Starbucks grow from four stores to a global chain of nearly 17,000 outlets by transforming coffee from a commodity drink into what he billed as an affordable luxury. But Starbucks's sales have been in steep decline during the recessionary era of penny-pinching.

To retrench, Starbucks last year began shutting hundreds of weak outlets and cutting thousands of jobs. As the economy worsened, executives began plotting a new strategy to portray the company as offering value.

...



http://online.wsj.com/article/ SB123413848760761577.html
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Otter
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Post Number: 556
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Posted on Tuesday, February 10, 2009 - 3:31 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I like good coffee (define that how you like, but for me it is definitely not diner coffee) and, the once or (maybe) twice a week I want one at work, I walk to the nearby Starbucks and pay $0.56 for a refill. One plain small coffee (that's what I want) last July, refills ever since. If I want a cafe con leche or something I make it at home in the morning. Starbucks doesn't have to be expensive if your tastes are simple. Just sayin' :-)

I only had one opportunity to eat at MCB, in December. Had a coffee too, very nice. I hope they make it. I can certainly live with simpler. I'll def. go try the new French place on Trumbull on my next visit.

O.
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Fury13
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Posted on Tuesday, February 10, 2009 - 3:34 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Interesting. I tried the McDonalds premium coffee when it first came out, and I had a pretty good cup. Nice and robust. About three weeks later, I tried it again, and it tasted weak, like something from Denny's or Tim Horton's. In fact, I'm sure it was brewed with dirty dishwater. I haven't ventured into McD's since.
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Professorscott
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Posted on Tuesday, February 10, 2009 - 3:47 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It's good for your health to stay away from Mickey D's, Fury13, in general.

I've never found Tim Horton's coffee to be "weak". It's not a particularly strong coffee, just typical. Once in a while I'm in the mood for something really strong, a Kona or dark-roasted Guatemalan. Usually what the grocery store bulk coffee sections calls "breakfast blend" is right up my alley.

Now, I've tried Syrian coffee, which is another planet entirely. I found out after the fact you're not supposed to gulp it down. My ears were ringing for four hours. That's coffee.
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Hans57
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Posted on Tuesday, February 10, 2009 - 3:52 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Oh yeah, Biggby just opened up on woodward. One falls down, another one steps up to the plate? Granted, it's by no means a similar place.
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Professorscott
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Posted on Tuesday, February 10, 2009 - 4:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Is Biggby any good? There are several of them in the area, but I haven't stopped by yet. I was astonished with the name they originally were using.
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Birdie
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Posted on Tuesday, February 10, 2009 - 4:27 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

mercury bar is re-opening on friday!
http://www.detnews.com/apps/pb cs.dll/article?AID=/20090210/B IZ/902100446/1361
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Eastsideal
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Post Number: 299
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Posted on Tuesday, February 10, 2009 - 8:37 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

I walk to the nearby Starbucks and pay $0.56 for a refill. One plain small coffee (that's what I want) last July, refills ever since. If I want a cafe con leche or something I make it at home in the morning. Starbucks doesn't have to be expensive if your tastes are simple. Just sayin'



True, but they're not making any money off of you. The big money in the cafe business, and the thing that allowed Starbuck's to grow so fast, is the specialty drinks. Take a shot of mediocre espresso, add a bunch of foamed milk, sell it for $4.00. A really tough sell to start with in a city like Detroit. And now that people everywhere aren't buying so many of those, and more of them are buying a plain cup of coffee with endless cheap refills, it's getting tougher and tougher to pay the rent.
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Otter
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Posted on Tuesday, February 10, 2009 - 9:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

They may not be making money off of me, but they were the ones that suggested it the first time (i just reused my cup because it was wasteful to throw it out.) :-)

When I go to a place like MCB I don't expect refills all the time. I'm more willing to pay $ for a 'specialty' coffee at a local specialty place that does it well, like MCB. Or even Intelligentsia, though they're not the same kind of place. But then again, I can get what I want for pennies with the espresso machine at home (thanks, mom) - not as good as buying one, but close enough - or get a $1.65 cortadito at the Cuban cafe downtown or a $1.25 cafe con leche at the Cuban lunch counter that I pass on the way to work. $4 lattes require the right kind of market and economic climate, and this isn't really it. Perhaps the margins in food are big enough that they can make their money there? I don't know the business.

O.


But you're right, it is a tough sell in a place like Detroit.
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Fury13
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Posted on Tuesday, February 10, 2009 - 10:39 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I never buy the specialty drinks. I just want strong, rich-tasting coffee. That's why it has to be Caribou, Starbucks, et al. Like I said, diner coffee usually tastes like dirty dishwater.

Evidently a lot of people feel as I do. I've observed that many folks just buy a cup of coffee and eschew the fancy lattes and frappucinos.
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Fury13
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Username: Fury13

Post Number: 2057
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Posted on Tuesday, February 10, 2009 - 10:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

By the way, Biggby's coffee seems to vary from location to location. It's sometimes a little thin-tasting, too.

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