Alex Barnett blog : Starbucks

The ROI Analysis: Starbucks vs. Espresso Machine at Home

alexbarnett — Sat, 06 Oct 2007 18:33:00 GMT

I like Starbucks coffee. A lot. But after doing some math (encouraged to do so by Kate), we realized I was spending a ridiculous amount of money on Starbucks coffee.

After some deliberation, research and ROI analysis, we took the plunge and bought our first espresso machine this week. We're now saving big and drinking much better coffee.

The ROI Analysis: Starbucks vs. Espresso Machine at Home

Pros of Starbucks: Someone else makes it.

Cons of Starbucks: It costs a lot considering what's in it. Miss out on the Starbucks "Experience": including queues (three of them: one to order, one to pick up the drink, one for "condiments"; Attempts at upselling and crosselling ("would you care for a Cinnamon-whatever-cake with that?"); Tip expected. Irritated spouse.

Pros of Espresso Machine at home: Big savings (see below). No travel required. Tastes a lot better than Starbucks. Happier spouse.

Cons Espresso Machine at home: Having to make own coffee and cleaning up after.

Starbucks - Money Down the Drain

cost per grande latte: $3.20
lattes p/day: 2
$ per month at Starbucks: $194.7
$ per year at Starbucks: $2336
OMG factor: very high indeed.

Great Tasting Home-Made Lattes with Espresso Machine

cost per home-made latte (double shot): 60 cents
home-made lattes per day: 2
$ per month on ground coffee: $37.5*
$ per year on ground coffee: $450

The Bottom Line

Savings per year: $1,886**

Bottom Line ROI = 17 weeks, inc. cost of espresso machine*** and ground coffee beans.

Assumptions:

* 25 double shots per 1 lbs coffee, at $15 per pound of coffee. 2.5 pounds per month @ $15 per lb (high-end est).

** Does not account for initial outlay on espresso machine, milk, saved gas, nor days away from home travelling on business.

*** Cost of espresso machine + misc. equipment + tax = $500

Mountains over Orem

alexbarnett — Wed, 04 Apr 2007 07:05:00 GMT

Two long--but excellent--days settling here in Utah. The team is making me feel very welcome since arriving and helping me nagivate my new environment.

Lots of energy here. Definitely getting the sense of urgency and excitement from everyone (30+ of us) as we ready for our first public showing later this month (more on this later).

Here are the offices in Orem:

The views around here really are fantastic - mountains everywhere. Here's the view from my new office:

Even the car park has its vistas...

;

Here's a sunset over Orem lake -

And my temp home for the next three months has mountainous surroundings...

And of course, I've located the only Starbucks in a five mile radius from home - an oasis in a 'dry' state...

Starbucks everywhere

alexbarnett — Mon, 22 Jan 2007 21:14:00 GMT

Frank has convinced me...Starbucks is everywhere.

The other day I drove up to one of the drive-thu Starbucks, ordered my usual grande latte, paid for it, left a tip and drove off.

About a mile later I turned around to actually get the coffee.