Its not surprising that Starbucks has more Fair Trade coffee because after all Starbucks couldn’t be considered “fair trade” when we have Uncle Howie pontificating from his holier-than-thou cathedra.

Starbucks drinks are fattening, assembled at lightning speeds, and our quality is going down.

I totally get that people are going to cut back on “luxury” items (like white mochas and caramel frappuccinos) and go more for low-cost items (like a $0.99 double cheeseburger).

But the thing is, we didn’t cut drink prices. That means that the folks who are hurting money-wise aren’t coming back until they start making money again. So who’s still coming? The folks who do still have money to blow on Starbucks. And when we cut our quality by taking every cheapskate measure in the book, that’s exactly who we’re alienating.

In economics it’s called normal vs. inferior goods (not a reflection or evaluation of quality – just a label). As an individual’s income rises his/her demand for a normal good will rise and demand for inferior goods will decrease (note Melody’s reference to ’02 & ’03 when McD posted losses and Starbucks soared).

Conversely, when the economy tanks, consumers’ demand for normal goods (Starbucks, Olive Garden, etc) decreases while demand for inferior goods (McDonald’s & 99 cent menu’s) increases.

This isn’t to say that producers of each type can’t adjust their strategy to stay competitive in adverse economic scenarios.

Starbucks isn’t?

Thank you.

But briefly responding to this discussion: You can’t really take a short view look at McDonald’s and Starbucks to make accurate comparisons. Each thrive in opposite business environments.

If you go back to about 2002 and 2003 at look at McDonald’s then, you’ll find that they were posting record losses at a time when Starbucks was doing quite well.

What we know is that during any kind of recession, store traffic at food establishments that are a little cheaper for a family, no tipping required at the table (no waitress service) – These kinds of establishments experience a surge in store traffic. Consequently, as their traffic goes up, so does revenue and the ability to put labor on the floor, and experiment with innovation.

When the economy is great again everywhere, McDonald’s may again find themselves posting a loss. I will say that McDonald’s has acted with great celerity and agility to adjust their business practices to the current economic client.

So to say that ‘McDonald’s can have clean and well-staffed stores during a recession’ doesn’t totally tell the whole story.

I believe that the Starbucks experience will improve for everyone: Customers, partners, shareholders. I have a long list of ways that I want to see improvement, and maybe it’s not happening as fast I impatiently want it to, but we will get there.

McDonald’s is a low cost leader fast food chain whose food is fattening and assembled at lightening speeds w/ little regard for quality.

Just the Angus deluxe sandwich (so no french fries or drink) is 750 calories and 39 grams of fat. Hardly quality fine citizen.

I’ll concede the point on chicken as Men’s Health magazine actually gives most of their poultry items a “B” grade.

Plus, they always seem well-staffed and have clean lobbies. And all of this during our horrible recession.

If McDonalds can up their quality during a recession, why are we lowering ours?