Being a regular coffee drinker myself, many news items in the past few weeks have made my ears perk up (pun absolutely intended). Starbucks changed the face of a daily American ritual, changing how we think about–and drink–our coffee; as the pendulum of collective tastes swings from the $5.90 cup of hyped and hyper-personalized cups of joe, a few diverging trends seem to be emerging.
First, a New York Times article (somewhat misleadingly) reported the $20,000 cup of coffee. A few days ago, I came across an NPR story on the $22 dollar cup of coffee, highlighting the price people in LA are willing to pay for a gourmet cup. Can’t say I’m too surprised, its about time someone felt the need to push the beverage to the elitist heights usually reserved for wines and microbrews.
But what makes this trend really interesting are the other coffee-related stories hitting the newswaves. Starbucks, fighting declining same-store sales and falling stock prices, decided to test-run a $1 cup. McDonalds is even getting in on the reasonably-priced coffee trend, building coffee counters and hiring baristas in an effort to give Starbucks and other dominant franchises a run for their money. (I, for one, would be glad to see one open up in my neighborhood. I avoid Starbucks as much as possible, not preferring over-roasted, highly bitter, burnt drip coffee, and I’ve actually enjoyed the coffee I’ve had at McDonalds.)
I wish I had some profound insight to offer on the two disparate trends named above, but, I think its pretty evident what’s going on. Per usual, some people feel the need to rise above the Starbucks-gulping proletariat, spending their money as connoisseurs. Good for them. I, however, will follow the other path, happy to have a decent caffeine fix for less.
Or, I’ll just make it at home, with the lovely Bodum french press I got for Christmas, with my trusty mini-grinder and a canister of Trader Joe’s beans.
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February 21, 2008 at 7:34 pm
Annie
you can get a $1 cup at Veruca. Simple, drip coffee with excellent flavor and always hot. Real cream and sugar no extra charge.mmmm
I love coffee and have found that over the years my taste has really escalated. I was always happy with Maxwell House…not any more. My favorite blend is from a breakfast joint in Minneapolis, Hells Kitchen. The Hells Kitchen Blend is yummy.
http://www.hellskitcheninc.com/COFFEE-REGULAR.jpg
they say this blend restores virginity. hmmmm???
February 21, 2008 at 10:45 pm
Biscuit Rising
Heck, if any food or drink could do it, why not coffee?
February 22, 2008 at 8:14 pm
Greg Sherwin
I don’t see the stories as incongruous. What we’re witnessing is the de-commoditization of coffee from some generic-labeled, one-size-fits-all product that has been marketed, and often tasted, like motor oil. Segmentation is the natural approach to something taken off commoditization — see: wine, cheese, chocolate, scotch, beer, etc.
Part of that segmentation is that one set of customers is going to like the old ways of a simple, straightforward product. And to them, the price means a lot — either because they can’t afford more or they see no extra value in it. There’s your $1 lot.
At the other end of segmentation, you see people willing and interested to learn their unique preferences and experimenting with what varieties there are to offer. And they believe there is a difference. That’s your $22 cup lot.
Two effects, one phenomenon.
March 13, 2008 at 10:57 pm
Colette
I was reading this to my mother who has never seen a blog before. Though she has been known to drink 2 pots of coffee a day, she would never spend more than $1.00 on a cup. I know where your genes come from.