GotPerl t1_jaeejsf wrote on February 28, 2023 at 8:59 PM Reply to ELI5- Given the average cost of a cup of coffee is marked up about ~80%, why hasn’t a company come in and charge significantly less to take a greater share of the market? by Educational_Sir3783 Starbuck's margin is about 10 to 10.5%. They have massive scale and buying power. It isn't the cost of the coffee. It is the rent, labor, insurance, marketing costs, etc, etc. Permalink 29
GotPerl t1_jaeejsf wrote
Reply to ELI5- Given the average cost of a cup of coffee is marked up about ~80%, why hasn’t a company come in and charge significantly less to take a greater share of the market? by Educational_Sir3783
Starbuck's margin is about 10 to 10.5%. They have massive scale and buying power.
It isn't the cost of the coffee. It is the rent, labor, insurance, marketing costs, etc, etc.