According to the Telegraph we are threatened with a loss of inward investment due to harsh words over *smelling the coffee*.
It occurred to me to wonder what real effect this might have. Presumably Arfa and others are already providing such a service and might be displaced giving zero change to net employment.
The low level of tax paid is possibly caused by offsetting the cost of expansion against profit. Signwriters and shopfitters apart, where is the gain?
Apart from the fact that they now claim not to have said (or meant) that which is reported I can't understand how, for an already established chain, opening up a new coffee shop, or ten, requires millions of pounds of investment.
They already have all their supply chain, advertising, etc etc set up, so that's going to cost them nothing.
And with premiums on commercial property currently being zero (or if you are lucky, negative) all that they have to invest in a new shop is (say) 20 grand in a fitting-out costs.
Everything else that they have to pay out, month by month gets funding from turnover.
The only way that ISTM they can make it cost "millions" is if they come up with some present day value of the ongoing (rent/rates/etc) liabilities for a 25 year lease, which whilst it might be necessary for accounting purposes is most definitely not a cash investment.
This is possible. Though it is reasonable to assume that there is some growth potential in this market. It is an optional product, it isn't "normal" food shopping.
Of course, if there is potential, all of the "home grown" chains will also be looking to expand so, IMHO, we don't *need* this import to satisfy it for us.
It's caused by creating artificial costs (and hence profit) in other jurisdictions which charge lower rates of tax (in some cases zero)
If it grows the market, more jobs for baristas (sorry, I've been watching too much Cheers recently!)
tim
Largely agree, Tim.
We do have it in our hands to choose to avoid Starbucks. :-)
Actually I already do. I always drink my coffee black and, in my taste, theirs is pretty disgusting. I suggest it has been blended for drinks with added milk of some sort.
As far as I care CafeCostaLotta can all go Starbuck themselves. Local independent every time for me.
MBQ
polygonum wrote: [snip]
Starbucks and Costa both sell dreadful coffee in my opinion. Cafe Nero is drinkable but still not good. There are a few Illy coffee shops around, hard to find and mostly independent, their coffee is always good. Starbucks et al use blends with a high proportion of cheap coffee.
On which subject, on my way to the frozen north last week we stopped for a keg stretch at a service station near Stafford. They were charging £3.08 for coffee, I found it hard not to laugh at them. Coffee costs EUR 1 per cup and that's a rip-off.
Agreed. Illy is nice but tends to be expensive in any form (as a drink or as ground coffee) - and, IMHO, sometimes not worth the premium. Rather depends if the only other option is Starb....
I can remember going to Paris by train and boat in 1958. SNCF charged the equivalent of £1 for a cup of Nescafé :-(
Possibly a net gain in employment; Arfa's burger joint (presumably) isn't squirreling its profits away offshore somewhere, so is contributing to paying for public services and spending its profits in the UK.
Also the big chains tend to use nationwide suppliers for signage etc; the only benefit to the local economy of a chain coffee shop is a few part-time minimum wage jobs.
Local 4-star hotel was serving very generous pots of tea for one (2.5 cups per pot) and home-made shortbread for =A32 when I went out last week. And I was able to hold a conversation without the whooosh of a coffee machine.
Owain
Owain
On 28/01/2013 13:29, Man at B&Q wrote: ...
I like Tchibo and was sorry when our local one closed.
Colin Bignell
What one would call firkin expensive
Bloody typos.
But a barrel of laughs.
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