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the Starbucks Story: "Pour Your Heart into It"
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mithridates



Joined: 03 Mar 2003
Location: President's office, Korean Space Agency

PostPosted: Sat Feb 18, 2006 7:16 pm    Post subject: Reply with quote

Coffee puritans are about the least fun people in the world to hang out with (assuming that's all they talk about). Starbucks is good for meeting people as well as wireless internet, and since Korea had almost no coffee culture before it came I assume it has given birth to a number of smaller places that have decided they can do it better than Starbucks can.
I'm not drinking coffee for at least a week though (since Friday). About six cups a day for two years and I just felt gross. Does coffee really give people withdrawl? I feel nothing, just better.
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Tiger Beer



Joined: 07 Feb 2003

PostPosted: Sat Feb 18, 2006 8:36 pm    Post subject: Reply with quote

weatherman wrote:
http://english.chosun.com/w21data/html/news/200602/200602170009.html

Quote:
How much you pay for a cup of coffee depends on where you get it. From a vending machine it costs just W500 but luxury hotels may charge up to W10,000 (US$10). Foreign franchises such as Starbucks and Coffee Bean, which are mushrooming everywhere, charge W3,000-5000 for a cup and an extra W500 for syrup and other flavorings.
But how much does it cost to produce a cup of coffee? Lee, who runs a franchise, says you need about 7 g of coffee beans to make a cup. ��The price of beans varies according to quality and brand, but it generally costs W140 won for a cup and no more than W300 even if you choose the highest-quality beans.�� Adding boiled water, milk, sugar and ice cubes brings the direct cost to W200-400.

The key is indirect cost, which is determined by where and how coffee is served and covers rent and management, depreciation of interior and labor. Direct cost accounts for just 10 percent of the total. The rest is indirect cost and profit.

A multinational franchise in Yeoksam-dong, a business district in Seoul, spends about W2,556 in direct and indirect cost making a cup of coffee assuming it sells about 300 cups a day or 9,000 cups a month. If the chain charges W4,000 on average for a cup, that is a clear profit of W1,500 for every latte.

Coffee lovers who buy two cups a day at the franchises spend about W200,000 a month. Lee Young-suk (40) says cup of coffee costs her more than a decent bowl of the traditional beef stew seolungtang. ��It makes me think I��ve got my priorities mixed up,�� she says.

There is plenty of room for coffee franchises to cut prices. Take Starbucks. The corporation recorded a whopping 17.8 percent in return on investment in 2004, which is astonishing given that the average in the food and beverage industry is 6.5 percent. In short, the franchises are overcharging. Since there is no reason the prices should be uniform everywhere, some say the chains could also cut prices in parts of town where rent and management cost are lower.

The industry hears its share of complaints. One staffer says customers get suspicious when the quality of coffee beans is not clearly indicated.

But the franchises insist the price for a cup of coffee is determined by different market environments as factors such as rent, labor cost and reinvestment vary from country to country. ��Consumers in countries where coffee has been enjoyed for a long time and by many people may get a cup of coffee at relatively low prices compared to other commodities, but consumers in Asian countries that have just started enjoying coffee have to pay relatively higher prices,�� an industry official says.


The writer of that Chosun article definetely didn't do his research.

First, he's describing how much it costs to make really cheap and bad coffee. (Which is what Starbucks entire thing was about NOT doing).

In addition, (unless its changed since 1997 when the CEO wrote the biography on Starbucks that I'm reading now), Starbucks isn't a franchise operation.
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itaewonguy



Joined: 25 Mar 2003

PostPosted: Sat Feb 18, 2006 10:09 pm    Post subject: Reply with quote

the_beaver wrote:


And itaewonguy, I've consumed copious amounts of coffee in Italy and discovered that it can be pretty similar (depending on the cafe and what you order) to Starbucks.

there's almost nobody today who has coffee in its original form, just eating the bean, or it's second form, ground up and mixed with animal fat.


I dont think the coffee tasted like starbucks dude.. come on!
first of all, you will notice in Italy there are only two types of coffee
CAFE aka short black! and cappucino the rest is BS!
to a novice coffee drinker maybe all coffee tastes similar once you add sugar and down it! but to a coffee drinker you will notice the creama is more darker in europe and the full bodiness of the flavor becuase europeans like their coffee STRONG! and it needs to pack a punch in one hit! where north americans will as they call it! AN AMERICANO top up the coffee with hot water! becuase its too strong, so in north america , starbucks you will find the coffee taste weak! to suit north american palates.
this is how roast blends got it names!
the dark french roast!
the Italian
the American

there is a reason Italians call American coffee "Aqua sporca" (dirty water)

not to mention becuase the majority of Coffees consumed in NOrth America come from a francise that means the quality of the beans will be what we call! POOR GRADE beans! low quality beans! becuase they buy in such bulk that the best beans usually go to the small batch distributors, large coperation wants the cheapest. so thats why from the very start starbucks is buying low quality beans! so already they have destroyed their coffees before it even gets to the roaster!

once at the roasters, they will blend and roast to suit the american palate which is light coffee!

believe it or not the origins of the beans and what altitude they were grown at really have an impact on the taste of the beans! robusta vs arabica!

becuase of the americans are buying in quantity they get many bad beans in the bunch so those beans will go onto to spoil the coffee so that will make the beans burn faster and create a bitter taste!
thats why about 7 out of 10 times I go to starbucks I get a bitter tasting coffee so need to add more sugar!
European coffee has a richer, smoother taste no bitterness!

I cant remember off hand becuase I havent worked in the coffee industry for 6 years now! I use to be a coffee rep! but I think Italian coffee is roasted with more robusta beans than north America because robusta holds more caffine and creates a more of a crema . but I cant rememeber exactly on that so dont quote me,. its been to long most of my worthless coffee information is erased from my mind..

but yeah to a normal drinker an espresso is an espresso and you wouldnt tell the difference! but if you are someone like me or satori who have worked the coffee scene and have drunk primo coffee you can really tell that difference! sounds like a pretentious WANK to the novice coffee drinker, its like wine tasting you know! a red is red! a beer is a beer
pilsner? larger? I couldnt tell the difference if I was drinking them!

the only real way to test a coffee is to order it short black and no sugar!
now if you did that in north american and did that in ITALY and the taste was same then maybe you drank ILLY coffee in USA and in italy hahahahah
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the_beaver



Joined: 15 Jan 2003

PostPosted: Sat Feb 18, 2006 10:27 pm    Post subject: Reply with quote

I-guy, a good post and you know your coffee. Arabica beans can create denser crema than Robusta but Robusto, especially with an espresso, has a longer lasting flavor (which can be bad). I think, in general, an espresso mix of Arabica and Robusta probably shouldn't go over 15% Robusta.

The origins of all beans are from Abyssinia and Arabica is grown at a higher altitude than Robusta. Most coffee is sold nowadays (and as the world's second most traded commodity, that's a lot of coffee) is Arabica and generally Robusta is used as a cheap way to pack a punch.

About coffee in Italy -- yes, it is quite easy to tell the difference between blends, but an espresso is no better than a cappuccino or whatever other kind. In the case of coffee the variety of preparation methods and tastes makes comparison stupid. And if you really want coffee with a punch, drink Turkish coffee and eat the crud leftover on the bottom -- that gives a punch like no other coffee product I've ever tasted.
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itaewonguy



Joined: 25 Mar 2003

PostPosted: Sat Feb 18, 2006 11:10 pm    Post subject: Reply with quote

the_beaver wrote:
you really want coffee with a punch, drink Turkish coffee and eat the crud leftover on the bottom -- that gives a punch like no other coffee product I've ever tasted.

yeah I use to work in a greek reaturant when I was 19 and the turkish coffee is prepared like the greek coffee! its HARDCORE!
and yes I drunk it many times and then use to have an old greek lady read my fortune with the coffee grinds stuck on the bottom of the cup was cool..


Quote:
an espresso mix of Arabica and Robusta probably shouldn't go over 15% Robusta.

I agree

Quote:
Most coffee is sold nowadays is Arabica and generally Robusta is used as a cheap way to pack a punch.


this is true! but robusta does hold more caffine than arabica and creates a more creama for the finish product. but it goes back to what you said about less than 15%
I guess this is why illy, starbucks, etc, guard their blends with their lives!
we will never really know what beans they use or where those beans come from! and of course how much robusta they use! as robusta is cheaper so....



Quote:

yes, it is quite easy to tell the difference between blends, but an espresso is no better than a cappuccino or whatever other kind. In the case of coffee the variety of preparation methods and tastes makes comparison stupid.


I dont get what you mean here..
first of all tasting it without boiled milk and foam really help for the overral taste of the coffee itself! drinking it straight means there are no distractions on your palate to effect the taste.
and preparation methods will this is a HUGE FACTOR on the final taste of the products and this where ignorance comes to play for most coffee drinkers in the world.
once the beans arrive to the barista its out of his control how the beans were blended or roasted! but he plays one of the most important parts of the final process! the farmers , the sorters, the washers, dryers, then the roasters/blenders, then the sorters again. and then the packaging.
now the barista is the final man to touch to the beans!
so the grinder has to be set the blades have to be set at a certain speed to make sure the beans do not get grinded to corse!
then the pack! the barista must not over pack the beans into the pod.
then the machine must be set at the right temp and make sure the water flow is 20secs for pour! then the placing of the cup so the coffee hits the side of the cup and pours down into the cup to create the crema!
then if you are going to make it latte or cappy,then you need to make sure the milk is fresh and not reused milk or cold milk added to an already used milk. I have seen this all TO MANY TIMES! big amature mistake!
so the milk needs to be steamed at perfect timing and this an ART
then the pour!!
hahahah I know it sounds like BS but in wellington this is all taken seriously I think melbourne, sydney, wellington, auckland rank the top in the the world for coffee!


Last edited by itaewonguy on Sun Feb 19, 2006 2:54 am; edited 1 time in total
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teachmeenglish



Joined: 14 Dec 2004

PostPosted: Sun Feb 19, 2006 12:11 am    Post subject: Reply with quote

My least favourite brewed coffee in the entire earth is Korean coffee shop coffee. If american coffee is dirty water then is yak's urine. tastes like the same grounds have been re brewed since the shop opened in the 80s. My second least favoute coffee is from 7/11. I do like starbucks (i'm from vancouver, the second starbucs city after Seatle), and like thier strong dark roasts.

As for beer....
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mindmetoo



Joined: 02 Feb 2004

PostPosted: Sun Feb 19, 2006 3:39 am    Post subject: Reply with quote

coffeeman wrote:
BANNED COFFEE SHOP LIST (feel free to add)

1) $tarbuck$
2 $eattle'$ Best
3) The Coffee Bean

Print out this list and keep in in your pocket to show your date the shops you are not going to go to.

This last shop, the Coffee Bean, shocked me when I went in there. They're even more expensive than $tarbuck$. 5000 won for a tall latte? That's stupid! - especially in a country that has a much lower cost of living than North America.


Well, there is the land issue. Rent doesn't get paid selling 500 won coffee and letting people sit for two hours nursing a single cup of coffee...

There used to be a few Seattle's Best and ever so briefly a few Tulley's. There might still be one SBC near City Hall, but I dunno. It's owned by Starbucks now anyway.

I like Starbucks. Good bathrooms (except for the stores that share their washrooms with the building... then it can be hit 'n' miss). Comfy stores to sit in. Bright. Sunny. I like the coffee. It's fair value for my money.
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Satori



Joined: 09 Dec 2005
Location: Above it all

PostPosted: Sun Feb 19, 2006 4:07 am    Post subject: Reply with quote

But don't just mistake strong for great tasting coffee. One of the biggest things in creating a good coffee is, like I-guy said, how fine the barrista sets the grind machine, how hard you pack the coffee, how long water runs through the grounds, and the heat and pressure the water is under. Most inexperienced or untrained barrista's set the machine to put too much water through the grounds. This is called "over extracting". The grounds only have so much flavour to give, then more water going through them starts to pull acids from the grounds. This is the strong bitter burned flavour. A true esspresso is a "short black", not a full cup of coffee, and it comes in a smaller cup, and should not be higher than 2 centimetres in this cup. Any more and you're not getting the full benefit of the flavour. And when done this way, a straight up short black should not be "strong" or hard to drink, it should be very smooth and nutty. It's hard to do this if your clientele are not educated because they often complain about not getting "value" when they see a short cup. But this is really the way to serve coffee. You ask a coffee freak, there are only three coffees worth having, an "esspresso" which can be called a "short black", a cappucino, and a latte. That's it. A coffee freak will never order a "long black", they don't even make them in Italy. They are too acidy.

Where I worked, unless it was peak rush hour, we would pack TWO handles, and make two short blacks, and put them together to make a "long black" with the proper nuttiness. It was still a little shorter than what most people expect from "a cup of coffee", but our clientele knew what they were getting.

And I agree Mith, coffee freaks are boring to have a coffee with if that's all they talk about. But it's like anyting that one has a particular interest in. Coffee is interesting and all, but it's not that complex that it would ever take up a whole conversation, even with people who are right into it.
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ddeubel



Joined: 20 Jul 2005

PostPosted: Sun Feb 19, 2006 6:24 am    Post subject: Reply with quote

I think coffee is way too expensive, especially given the fact that the little guy on the other end is getting next to nothing for his/her crop. Big profits, big mark up .

That said, I would pay a lot for a good cup. Like it has been said, it all is about more than the beans. Mostly the grind and especially the heat of the water. You have to have a good coffee machine to have a good cup of coffee.!!!! Most home machines don't have a high enough proximate temperature to extract flavour from the coffee....also as said, grind comes into play. The only good thing Starbucks ever did was start selling good coffee machines to the general public!

I used to live, be very addicted to Jamaican high mountain coffee.....not to be confused with its inferior cousin, blue mountain. A real drug and full of caffeine high due to its growing conditions. The peculiar combination of high elevation and high humidity. Then I couldn't find it anymore at my usual bean place. Not available. After much search, I finally ended up talking to an importer down at the docks. He set me straight and said the only place to get it is Japan. They bought it up for 20 years, guaranteeing a net annual price. Anyone ever find it in Japan?????

I love the coffee houses of Europe, the headquarters of civilization or atleast the birthplace.......large, airy and unpretencious. About conversation and not hiding away and pretense. If anyone ever gets to Prague, try the Slavia along the river. Wonderful place.

DD

PS. May I die like Balzac from too much of the black stuff....
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coffeeman



Joined: 24 Nov 2005
Location: Korea

PostPosted: Sun Feb 19, 2006 6:54 am    Post subject: Reply with quote

Quote:
Well, there is the land issue. Rent doesn't get paid selling 500 won coffee and letting people sit for two hours nursing a single cup of coffee...



How about PC Bangs that let you sit there for an hour for 1000 won?

While your point has logic to it, I still feel that 5000 won for a latte is way too expensive. For sh%t's sake, you can buy a full Korean meal in Myeongdong for 5000 won and take two hours to eat it if you like.

I think another reason for the ridiculous prices is that Koreans think that brewed coffee is some kind of luxury coffee. They're used to drinking "coffee mix" which is worse than straight instant coffee.

An important point that needs to be made is that these coffee shops can commit extortion from us because they're popular places to take a date. Where else can you take your woman if she asks for coffee? Dunkin Donuts? You might not get a second date. Like with White Day and Christmas, we're stuck to say "bye-bye" to our money. What are ya gonna do?

Yes, I said it! 5000 won for a coffee is extortion. That's 10,000 won for just two coffees at Coffee Bean. Almost 4hrs salary for a university student working a part-time job.
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Qinella



Joined: 25 Feb 2005
Location: the crib

PostPosted: Sun Feb 19, 2006 8:57 am    Post subject: Reply with quote

coffeeman wrote:
I think another reason for the ridiculous prices is that Koreans think that brewed coffee is some kind of luxury coffee. They're used to drinking "coffee mix" which is worse than straight instant coffee.


Yeah, you're definitely on to something. Before I came to Korea, I lived across from the Starbucks and drank a large red-eye (regular cup of the day with added espresso) every morning. When I came to this little ass city in Korea, I was seriously depressed about the coffee situation. I walked around my town in vain for two straight days searching for real coffee. When I finally figured out where a Starbucks was in the nearby city of Daejeon I was ready to shell out anything they asked for a regular cup! Since then, I brew Starbucks at home and haven't even touched the "coffee mix" since. That *beep* is the worst! Who can drink that and think it's good?

However, the Starbucks back home had similar prices. The prices in Korea are on average only about $0.75-$1.00 more. For example, a regular Cup of the Day is 2,500 won. The same one in the US (where I lived, NC) is about $2, and your sort of expected to leave something in the tip jar.

It's also important to realize that the price of coffee, or basically anything for that matter, has very little to do with production value. Prices are entirely determined by consumer demand. If Starbucks starts charing 8,000won for a coffee of the day, they will make less money in the long run. If they start charging 400won, they'll still make less money. The thing to do with any business is to find out the maximum amount that most people are willing to pay, without deterring a significant customer base, and charge that. It's not about how much the workers are being paid.

Q.
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weatherman



Joined: 14 Jan 2003
Location: Korea

PostPosted: Sun Feb 19, 2006 4:17 pm    Post subject: Reply with quote

http://search.hankooki.com/times/times_view.php?term=starbucks++&path=hankooki3/times/lpage/biz/200504/kt2005042418102311890.htm&media=kt

Quote:
Early this year, the company also closed a branch near a movie theater inside COEX Mall in Samsung-dong.

Although the shop did well, ranking on the top ten list in terms of sales, the company said it had no choice but to shut down the shop as the rent was raised 300 percent.

The company filed a lawsuit to defend the shop, claiming that no city in the world would raise the rent 300 percent at once.


Lovely.
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mindmetoo



Joined: 02 Feb 2004

PostPosted: Sun Feb 19, 2006 4:33 pm    Post subject: Reply with quote

coffeeman wrote:
Quote:
Well, there is the land issue. Rent doesn't get paid selling 500 won coffee and letting people sit for two hours nursing a single cup of coffee...



How about PC Bangs that let you sit there for an hour for 1000 won?


You're not the sharpest knife in the drawer huh? PC Bangs don't locate in high traffic, high profile, street level, corner locations.

coffeeman wrote:
An important point that needs to be made is that these coffee shops can commit extortion from us because they're popular places to take a date. Where else can you take your woman if she asks for coffee? Dunkin Donuts? You might not get a second date. Like with White Day and Christmas, we're stuck to say "bye-bye" to our money. What are ya gonna do?

Yes, I said it! 5000 won for a coffee is extortion. That's 10,000 won for just two coffees at Coffee Bean. Almost 4hrs salary for a university student working a part-time job.


Last time I checked, a nice mug of coffee was 3,000 won. A mug of Starbucks in North American is getting near $2. But let's, for the sake of argument, say a mug of Starbucks is $1.50. Actually a mug of any coffee of any quality in North America is at least $1.50. So you pay double the price in Seoul. Geepers. Double the price at a Western style establishment selling an imported premium product. That's about par for the course in Korea. Ever try to buy cheese in this country? Or eat at Bennigans... It doesn't stop at Western food. Take the same ingrediants used to make a Korean meal, repackage it as Chinese food or Japanese food, and you'll pay a lot more in Korea.

Yes, Captain Obvious, you're paying for atmosphere, location, western cache.

In terms of price/average wage disparity, China is far worse. A cup of coffee at a Starbucks in China is about $3 as well. My friend in China hires a cleaning lady for 30 cents an hour. In Canada, that would make that coffee about $70.

Anyway, dump on Starbucks and the price all you want, but why don't you tell us of a superior coffee chain with Starbucks' location and atmosphere that doesn't charge extortion level prices (ie $1.35-$1.50 above the North American price) in Korea ?
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seethetraffic



Joined: 22 Nov 2005
Location: Seoul

PostPosted: Sun Feb 19, 2006 4:41 pm    Post subject: Re: the Starbucks Story: "Pour Your Heart into It" Reply with quote

Tiger Beer wrote:
Reading the book now.. very good.



Strangely, I've never even ordered anything in Starbucks before.. but thinking of it now.


Made the trek yesterday and found it at Kyobo. Thanks for
the suggestion!
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jinju



Joined: 22 Jan 2006

PostPosted: Sun Feb 19, 2006 4:48 pm    Post subject: Reply with quote

I like Starbucks...and thats a surprise as I hate coffee.
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