Every time I see
someone leaving a McDonald's (MCD) with some icy coffee drink I think
'what a mistake Starbucks (SBUX) is making.'
Starbucks CEO Howard Schultz has said several times that McDonald's is not a competitor. In the past year Starbucks' stock has fallen nearly 60% while McDonald's has nearly doubled.
Howard Schultz came back to the company in the middle of its precipitous fall and has changed the coffee a bit, changed some of the available edible offerings, retrained staff and started to close retail stores.
Until Schultz realizes that McDonald's is an important competitor, the situation will not get better. Schultz believes that Starbucks is a destination store for people who want good high end coffee. He need only look at his drive-in sales to know what BS he is promoting. Most Americans want the coffee but only if they can avoid the inside of his retail shops.
Starbucks is a snooty,
elitist, New York Times selling, jazz playing playground for the
nattering nabobs of negativity and McDonald's is for the wholesome,
upbeat, hard working American who wants good coffee, not an esoteric
Obama experience.
If you doubt me, check out Schultz's campaign contributions. He is a died in the wool Lefty...giving plenty of money to Jeremiah Wright's friend, Obama. He is far out of touch with 70% of America.
Schultz has no idea what America is about, especially the bulk of it which he abhors, and his coffee company has nearly exhausted the effete arrogant crowd that has carried it this far.
