‘Latte Index’ serves as tepid consumer economic indicator
Our Washington Independent colleague Mary Kane may be on to something …
An unofficial measure of what’s going on with the economy is the Latte Index, or trends in discretionary spending when it comes to Starbucks. When people cut back on pricey, frothy coffee drinks they probably didn’t need in the first place, the theory goes, it shows they’re taking steps to curb their spending. And less consumer spending means slower economic growth.
With Starbucks already closing 600 stores due to lower sales, it’s fair to say the Latte Index carries some weight. But now The Big Picture spots another Latte Index-style trend: Discounts at Starbucks:
As you may have heard, Starbucks has canned their DVDs and CDs. At a recent visit, I picked up Juno (which I have been meaning to see), and for Mrs. Big Picture I grabbed The Kite Runner — for $7.95 each. They also had the new James Hunter CD (Official site, Amazon, NPR interview) and the latest John Mellencamp disc (Official site, Amazon) were also $8. But the big thing that caught my eye was their $2 special. Bring your receipt in from any purchase in the am, and after 2pm any Grande Cold drink is just $2. Value maximizers may want to go for the Iced Frappucino Double Chocolaty Chip Frappuccino Crème at $4.80 but it weighs in at 510 calories. Or, the Java Chip Frappuccino is 460 calories. I went for the Iced Caramel Macchiato, which cost less, but is practically dietetic at 230 calories.
I cannot recall Starbucks being this promotional since . . . well, ever.
The Big Picture wonders if anyone else is seeing new promotional discounts. The $2 special — a new economic indicator?
Like this story? Steal it! Feel free to republish it in part or in full, just please give credit to The Colorado Independent and add a link to the original.
News junkies in Colorado are embroiled in a fierce debate over how best to save The Denver Post from its vampiric owners – the hedge […]Read More
The Home Front: A legal challenge to Boulder’s ‘ban on assault weapons’ hits 24 hours after it was voted into law
“Cody Wisniewski made good on his threat Tuesday night to sue Boulder and its council, mounting a legal challenge to the city’s ban on assault […]Read More