Ah, yes the legendary “five dollar cup of coffee.”

 The most widespread, largest coffee retailer, Starbucks, has been charging an insanely high amount for their drinks and products. Having higher prices than any other market, and higher than competitors such as, Caribou Coffee, McDonald’s Corporation, Nestle, and Dunkin’ Brand Groups, Inc. Five dollar bills, Starbucks has had an immense amount of influence in China due to the fact that they charge more for overseas fees, which means their profits are higher and they are able to stay on top.

 Why do we continue to turn to Starbucks rather than other companies?

Simple, supply and demand: people are willing to pay it. Starbucks will charge as much as possible to make profit, without having the number of cups sold decrease. Some will pay any amount because they have the money and believe it is a luxury good if it has a higher price. Which is true in some instances.  Not many people are going to pay nine dollars for one cup of coffee, but to some, it is about the value, or that it  tastes better than coffee from your own home.

  Simply waking up to the aroma of coffee has been scientifically proven to restore brain activity from a nights sleep. Stress caused by sleep loss via caffeine can be alleviated through the smell of coffee. As do most working individuals in the U.S. enjoy that caffeinated brew in the morning to keep their motivation and energy levels high. Most figure stopping by the local Starbucks and getting a gourmet cup of coffee is the way to do that hassle free and relatively quick. It is also true that caffeine is addictive, so once a person finds their favorite ‘special’ drink at Starbucks, they continue to go back day and night.

Starbucks is a very labor intensive business. In a five dollar cup of coffee, you get about 50 cents of product, 50 cents of labor, two dollars for the factories, renovation, and management, and then lastly two dollars for the profit of the company. The most expensive drink ordered at the Starbucks franchise to this day, came to a total of $47.30 with 3,000 mg of caffeine in a 52oz. mug. Most continue to purchase food and or drinks from Starbucks for many different reasons; it has variety, high quality coffee, and great service.