It’s a discretionary purchase. In a pinch, when people have to conserve, they make sacrifices. Starbucks tops many peoples’ list of things they can do without, if they must. I know two friends who now make their coffee at home each morning. I foudn their commetns quite interesting.

They have had an incredible run. Let’s hope they never turn into a Kirspy Kreeme. I don’t think they will.

Starbucks was a steady growth company from its inception until 2 years ago. Then it started dropping in price. It is now at a crossroads. Growth, especially in the United States is nearly tapped out. The question now is whether all the changes Starbucks is making will pull them out of the downward stock price spiral. It will probably be difficult. Coffee is a commodity and you can only sell so much in a given store and incremental improvements pale compared to simple out and out growth as before.