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Starbucks Debases It’s Currency $SBUX Not Really

Recently many financial news outlets were appalled that Starbucks had debased its currency. For the non Starbucks user that’s the star rewards system for the frequent user.

Major change yes. The olde system revolved around beverages mainly coffee. The new system is more rapaciously capitalist and revolves around dollar volume tweaked to profit margins and under-utilized time slots when the baristas are not busy enough.

Good move Starbucks. You are moving away from the breakfast model into an all day bakery with selected liquor licenses.

The true genius of the system is the prepaid float that Starbucks is developing. Every business loves it’s free cash. Just ask banks that offer no interest chequing accounts.

George Gutowski writes from a caveat emptor perspective.