Bloggle

The economic downturn is beginning to get to folks’ bottom line — their coffee money.

Java junkies looking to pinch pennies are sipping less expensive coffee drinks, brewing at home or going cold turkey altogether. The shift is hurting both small-time coffee shops and giants of joe such as Starbucks, which said Wednesday that it expected lower second-quarter profit and full-year earnings than it originally projected because in-store sales and traffic had declined.

Historically, coffee is one of the last things to go from consumer budgets… but that history of spending doesn’t necessarily account for a more modern affectation: the five-buck-a-cup über café latte.

Those who haven’t given up the coffee-shop routine are buying less expensive drinks: drip coffee rather than a caramel macchiato, or an iced coffee instead of a frappuccino.

“Fancy coffee has had its run,” said Dean Trucco, owner of Stir Crazy, a boutique coffee shop on Melrose Avenue.

While brewed coffee — both at home and in the coffee house — should be poised to make a come-back, what might that mean for the five-buck-a-cup Clover-brewed single origin? We’ll see.

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• How do you love Peet’s? Peet’s wants you to count the ways. Share your story of Peetnickety devotion, and you could win free coffee for a year — for you and five of your friends. The “Why I Love Peet’s” contest is part of the company’s Founder’s Day activities honoring Alfred Peet, the grandfather of specialty coffee. While I suspect it might be something of a conflict of interest for me to participate, myself, feel free to count me among your friends. ;)
• Survey says… According to a recent NCA survey, more Americans are drinking specialty coffee, but the amount being consumed every day is falling. Could it be that folks are starting to wake up to a bit of an economic pinch? Surely not. And remember, your beloved leader wants you to click your heels three times and say, “We’re not in recession. We’re not in recession. We’re not…”
• Resisting the Siren… The Colombian profiles four independent Vancouver coffee shops who’ve each found themselves pitted against Starbucks, and — so far — are living to tell the tale. After conferring with Taylor Clark — author of Starbucked — the Columbian looked for just what these shops were doing right:
  

  “Clark’s research revealed, and the Columbian’s anecdotal reporting confirmed, that successful coffee shops develop a loyal customer base that prefer s the independent coffee maker’s brew over Starbucks’. They maintain a narrow focus and don’t try to imitate Starbucks in look or products. They benefit from a segment of consumers who will drink anything but Starbucks. And, perhaps most importantly, coffee has become a part of daily life for so many people.”

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