...Starbucks' chief financial officer warned it would be "very challenging" for the coffee shop chain to meet the high end of its 2007 earnings forecast, in part because of rising dairy prices.
There are two ways to look at the increase: as old news that probably won’t faze the chains’ loyal/addicted customers (myself included) who are accustomed to their individualized luxury espresso drink, or as an incentive for customers to find a cheaper, local joint. CNN talked to Doug Hibbing, president of Fla-based Cuppy’s Coffee & More, a small specialty coffee franchise.
Cuppy's can keep prices well below the cost of Starbucks, at least for the time being. In addition, "because our stores are locally owned and operated we don't have the layers and layers of overhead some of our competitors have."