Asmongold TV - Starbucks is 100% cooked.. | Asmongold TV

Episode Date: October 8, 2025

Starbucks is 100% cooked.. Asmongold podcast for all of his stream highlights, competitions, reactions & more. ----------- ----------- Keywords: gaming commentary, esports commentary, gaming opinio...ns, pc gaming Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:00 I think the problem with Starbucks is that it's too expensive. That's the real reason why I think people aren't going. And also, well, actually, I'll watch, let me just watch the fucking video rather than just giving all of my opinions before the video even happens. Okay, here we go. Starbucks is struggling. Their profits are down by a whopping 50% following six straight quarters of losses. And a declining image has left one of America's most recognizable brands in a bit of a bind.
Starting point is 00:00:26 They just recently announced that they'd be closing a swath of stores as well as laying off 900 corporate staff members. This is after laying off another 1,100 corporate staff just in February. Customers are reporting high prices, long queues, and substandard product time and time again. And even staples like their pumpkin spice latte has lost its shine and left through the competitors to take their shot. It was 10 years ago they did that. With great success in some cases. But it wasn't always like this.
Starting point is 00:00:52 At one point, Starbucks was America's sweetheart. Here's the reason why Starbucks is losing sales. It's because pricing is too high. Everything is too expensive in the store. And there are too many other places like McDonald's, the Mick Cafe, a lot of other fast food restaurants like Dunkin' Donuts, Jack in the Box, have all tried to take a slice of Starbucks pie. And so whenever Starbucks came out, it had a de facto monopoly on any sort of to-go coffee. but now because there's so many other places that offer relatively the same thing, there's less reason to go to Starbucks.
Starting point is 00:01:36 That's the reason why I think is, that's why I think it's mainly happening. The real heroes, Johnny, the story of one man. It's not because of, you know, the Palestine divestment. It's not because of fucking the union with Starbucks employees. It's not because Donald Trump won the presidency. It's because they're simply cheaper and better. and more convenient options to go to that also have other food that's available as well, like McDonald's and Jack in the Box.
Starting point is 00:02:05 That's why I think it's happening. The local coffee roaster is a global sensation left, then came back and did it all again. But since those days, clearly quite a lot has changed. And it's left Starbucks in a situation where it's fighting desperately, but doesn't seem to have quite as many customers in its corner as it once did. So sit back and let's learn why Starbucks. fell off. Who!
Starting point is 00:02:29 People tend to have quite strong opinions about coffee, especially about other people's coffee choices. Some people will look at you like you just admitted. My favorite coffee is Dr. Pepper. Drinking a whole urine if you tell them that you like Starbucks, but others might need their double-shot vanilla, hazelnut, methamphetamine, venti, frappuccino, literally every morning.
Starting point is 00:02:49 But no matter which side of the aisle you end up landing on, it's pretty impossible to deny the impact that Starbucks has had on all of our lives. It began in 1971 when three partners, Jerry, Gordon, and Zev, opened a little store in Seattle's Pike Place Market. They had no intention of actually making coffee. Instead, they sold, like, roasted coffee beans, teas and spices. And they did find, really. They became a staple of the local community, a place where you could go get your beans, come home and then brew them for the family.
Starting point is 00:03:16 But things changed in 1982 with the arrival of one man and a name that you might want to remember, Howard Schultz. In 19802, Howard Schultz joined as head of marketing. And on one of his very first business trips, he visited Milan, Italy, and experienced something that would completely change his business back home. Italian coffee bars. So at this time, in the 80s, coffee culture in America largely revolved around drip coffee, served in a big mug or a styrofoam cup. You get it home. Often with free refills in a diner or an office, you would drink coffee for the caffeine, not for fun. In Italy, on the other hand, the story was a little bit different.
Starting point is 00:03:50 And the reason why this happened in Italy is because everybody's on welfare. over there and nobody has a job. So it would make sense that they would have all day to sit at Starbucks because they're not doing anything else. This is the way it is in Europe. Nobody works over in Europe. Nobody works, nobody has a job in Europe. Coffee was a social ritual.
Starting point is 00:04:14 It was something that you drink at a bar with friends and as a communal activity as much as for the caffeine. We know this. It was something that would be woven into your day-to-day life and not neck down in order to get a joy of energy. The drinks had standardized names, each of which was designed for a different type of gathering, and they were priced pretty fairly so that everyone could take part. A long shot from the way it was done in America. And Schultz saw this idea, tried to bring it to America to create this new third
Starting point is 00:04:40 place where people could grab a drink with their friends, hang out and make coffee part of their social life instead of just fuel. But it was actually a controversial idea, so controversial, in fact, that none of the original Starbucks bosses wanted to accept it. And so Schultz was forced to leave start his own cafe chain, implement these ideas, and did it to such great success that he ended up coming back and buying out Starbucks from its original own. Fucking based. Absolutely fucking based. That's hilarious. I love it. Yeah, there we go. Oh, my God. Just four years later. What a guy. And this is where the Starbucks that you were I think also another reason why I think that COVID did irreparable damage to public space gatherings.
Starting point is 00:05:25 Like in general, I think that after COVID happened, because it went on for so long, people became comfortable just staying at home. And there are less people that just go out and stay out somewhere in public in general. Critical fucking hit to public spaces. Exactly. Yeah, COVID. And Starbucks is a public space. And so obviously it would be affected by it. I would recognize today actually began.
Starting point is 00:05:51 Starbucks became this place where everything was designed for familiarity and comfort. They chose round tables because they were less isolated and more inviting. They encouraged customers to take their time with their drinks. And every detail was carefully curated to make their cafes into community spots. And this insight is actually one step farther. I don't think he might not talk about this. But like if you compare this to McDonald's, so even the color palette and the color decisions that were made at Starbucks were made to invite people to come into the store and to stay into the store. McDonald's was actually the opposite, and so was Taco Bell, where a lot of the ways that they kind of, you know, they did color theming, they did very bright, vibrant primary colors, which for a lot of people are a little bit, it's a little bit scary for them.
Starting point is 00:06:44 I don't really like that as much. People aren't as comfortable with a color theme around them that's similar to that. And because of that, people spent less time at McDonald's. They spent less time at Taco Bell. And yeah, and hard seats. And hard seats are another one, synthetic or it's off-putting. And so Starbucks even went one step farther with that. And Starbucks was one of the only places that had that. And you know now you go to a Taco Bell or especially in McDonald's, even a Wendy's,
Starting point is 00:07:11 and it has much more of a warm color feel to it than it did back then. And that's one of the reasons why. Great success. They went from six stores in 1988. There's a lot of reasons. Three and a half thousand stores in the year 2000, when Schultz finally decided to step down as CEO. And when the 2008 recession finally hit
Starting point is 00:07:34 and Starbucks was struggling once again, Howard Schultz came out of retirement, like Pellet or something, to get them back to their roots of being this third place where anyone can hang out. So this guy sold it at the piece. This guy didn't want to, this guy made his own company.
Starting point is 00:07:50 His own company did. well that he bought the company that said that he couldn't make his own company. And then his company then did even better to the points where he sold it. And then it came back and it was doing worse without him. And then he buys it back to fix it again. Bro, this is like a fucking Jason Statham movie plot. Oh, just one more job. One more job, Ted, then you're out of the game.
Starting point is 00:08:18 But I'm retired. Ted, it's one more job. They've got Sarah. You need to help me. All right, I'm in. Have an affordable, social, communal drink with a friend. He shut down all of the Starbucks in America for a day to retrain the baristas on how to improve their espresso quality.
Starting point is 00:08:37 They brought in new machines, and the company experimented with new menu items and leaned heavily into becoming an ethical community spot. And it seemed like it worked. A couple of years post-recession, they were profitable again. No one could really seem to beat them, and they were everywhere. But no good thing lasts forever, unfortunately.
Starting point is 00:08:55 The pandemic set in motion the real shift for Starbucks. The concept of hanging out indoors with others, which Starbucks had built its entire model on, was immediately cancelled, right? Coffee culture went back almost overnight to being incredibly individual. And the big winners from this were the drive-through coffee shops like Dutch Brows and Seven Brew, which grew steadily throughout this period. Starbucks did try to ride the wave by pushing their apps and their collection-only stores, but they were already in too deep with the old model and stuck between two worlds.
Starting point is 00:09:25 Post-pandemic, almost 60% of coffee is actually ordered at drive-thrus in the US, and it's growing year-on-year. The pandemic was really this huge-term... So you said drive-thru, not Starbucks. That's what I was saying before, about how it's all these other places that are doing the same thing. That's what it really is. And sitting in Starbucks was one of the first things to be cut from the budget.
Starting point is 00:09:46 And despite the fact that their marketing materials would have you believe that, they really want to be a community location where people can hang out. The reality is that Starbucks is a $90 billion. corporation and they've done all of the same things that you'd expect from any other company that size yeah over the last decade they've really aggressively cut costs what a surprise prioritize the look and feel of their stores and they've focused on squeezing more profits out of their once extremely loyal clientele having a place where people buy one drink and then sit around for an hour is a really bad way to make money every quarter and so they started making more and more stores have less and
Starting point is 00:10:20 less seating, their staffing priorities focused more on meeting. I never felt like I belonged in the Starbucks. I never went inside the Starbucks and I sat down and I felt comfortable because I felt like I was, uh, it's like if you put a raccoon in a house, it's just not supposed to be in the house. Drive through demand at the expense of in store customers because they generate more dollars per hour. And they jacked up the prices to the absolute maximum. Not to target out. Yeah, not.
Starting point is 00:10:56 But you can only squeeze people so far before they break. Since the pandemic, inflation has been pretty intense, and it seriously hit the food and drinks world. But also by the time the pandemic had ruled around, the coffee business was already bigger than ever. And there were more and more options for everyone at any price point. Starbucks had to some degree been able to justify its prices through all of the auxiliary perks that you would get along with your coffee.
Starting point is 00:11:18 Yeah, you get to sit down and it's a nice place to be. Yeah, you're right. And I mean, like, there was a value with that for sure. isolation, you wouldn't feel rushed or pressure to leave, and you have things like free Wi-Fi at your disposal so you can even work there. But the handle's kind of- I think that's actually a much bigger point than I think he's making it out to be. And maybe he's like a bit, I think the guy's a bit younger than I am, right? But you guys remember back, I mean, if you're a boomer like I am, I'm 35, you remember back in the day, like having free Wi-Fi
Starting point is 00:11:51 and having Wi-Fi in an area was an actual value that people would go to. like people cared about this like this was an actual thing that would uh affect the way that people behaved nowadays i feel like that's not really the case anymore it's not it hasn't been for a long time they steal your info uh yeah if you log in yeah be be very careful uh my advice to any of you guys uh if you do that remember people go to starbucks and play wow league legends yeah exactly right of course um if you guys this is a little bit of advice if you guys have a phone make sure that have it to where it does not automatically connect to Wi-Fi networks. Always make sure you do that. Because you don't want to connect to a public network because they might not be secure. It's my advice.
Starting point is 00:12:39 Forced. And instead of doubling down on the third place model, they try to align themselves more with the rapid delivery model. More and more coffee is consumed on the go. And the interior of a Starbucks has progressively shifted to meet the demand from those customers. And the $8 Starbucks cup of coffee doesn't quite feel as good when you order it from a drive-thru and drink it. Exactly. You're ordering. So this is, what's really ironic about this is that the opposite is affecting fast food restaurants through delivery drivers and delivery, like, food delivery.
Starting point is 00:13:10 So basically, a lot of people would pay extra for a sit-down meal experience at a Chili's or at, you know, like Applebee's or something like that. But when you're getting your food delivered and you have to choose between, you know, Applebee's and McDonald's or Chili's and McDonald's or Taco Bell or Burger King, most people are going to choose Chili's or Applebee's because the food is generally better, right? So because the prices are relatively similar now, because of COVID, increasing the prices of drive-thrus and fast food, what's happened is that you're seeing fast food losing a lot of market share because of the
Starting point is 00:13:49 equalizing effect that delivery food and food delivery has had, like Uber eats, store dash, etc. And I think that the same opposite effect is happening to Starbucks is that the value that people are getting out of Starbucks now, people are going to the lowest common denominator. So if you're just ordering off of a menu
Starting point is 00:14:07 inside of a drive-through, what's the big difference between the Starbucks experience versus the McDonald's experience? Well, there isn't as big of a difference anymore. And so the value ad that Starbucks had, which was its environment, the culture, and, you know,
Starting point is 00:14:22 the free wide. to sit down, all of that is taken out of the proposition of going to Starbucks. And because of that, you're seeing way more people not going. You see kind of what I'm saying about this? Car, as it does when you sit inside a nice environment with a friend. The more price conscious consumer can make coffee at home now or trade down to an even cheaper coffee place like McDonald's, while the more affluent car intel has access to a bunch of like artisanal spots to specialty coffee and to independent businesses that have way
Starting point is 00:14:54 more insight and time to discuss the details and intricacies of their products. Independent cafes are now so much more trendy and is seen as a more socially acceptable choice, while Starbucks is better known for employee union busting, boycotts, and being overall bad value for money. I think so we had a place in Austin. I'm not going to say the name of the place, but it was a place that we would go to and everybody would hang out there. And you didn't have to buy anything to sit down. And I remember this place was an absolute fucking zoo. Like, everybody who was between 20 and 30 years old was at this place. And so there was like everything was getting knocked over. People were going crazy. There were homeless people living in
Starting point is 00:15:40 there. Everything was going on, right? And they just, a strange brew? Um, no, no. It started with, uh, with an R. But, uh, actually, maybe they did, you know what? You know what? Maybe they might have renamed it because the end result is that they weren't selling any fucking food. They were just paying for a place for a bunch of shitheads to go to and play Magic the Gathering. And so we would go there. We'd pay Magic the Gathering for six hours and we'd buy one cookie for $2 and they ran out of fucking money. And so they had to shut it down. Held on to this idea that they were a real third place when they haven't really been that for years.
Starting point is 00:16:21 At their core, there were fast food dessert. Yeah, I love them. go-to for convenience and consistency. It's more like McDonald's than it is a local community diner. But McDonald's at least has the Big Mac. For Starbucks, far too much of their menu was replaceable and their niche unique offerings clearly haven't been enough to keep people hooked, especially not the prices that they're trying to sell them at. And their CEO has recognized this today. They vowed to minimize price hikes going forward and focus their new strategy on bringing back the cozy interiors. But I think it might be too little too late because while Starbucks has
Starting point is 00:16:54 has been doing layoff after layoff, closing stores and forcing AI into the stores that are still around, the competition has been innovating, listening to customers, and actually just like giving people what they're screaming out for. And this might not actually be that obvious if you live in the US, where you can still find Starbucks that are 200 meters away from each other. Sure. But it's a lot more obvious in other parts of the world, especially in China, where the story of Starbucks looks a lot more dire. There's a lot of people in China. This is probably bad. When you think of coffee culture, China might not be the first country that jumps to mind.
Starting point is 00:17:27 But maybe it should. China has taken some 800 million people out of poverty since the 80s, and in the process, they've created this whole new consumer. If I could get a guarantee from the Chinese government that I would not get reeducated because of my past comments on China, I would go to China. I would. I would love to go to China.
Starting point is 00:17:53 This group of people who are looking for nice little treats, their money on. And Starbucks has been for a while desperate to fill that role. They opened their first Chinese branch in 1999 and used their first mover advantage to completely take over. At their peak, they had over 40% of the coffee market, but since then, they've had a serious, serious fall off. In less than a decade, they've got... By the way, this is exactly what I said. One from holding over 40% of the Chinese coffee market to under 15%. Starbucks had been gambling on this idea that as China became wealthier, consumers there would behave increasingly like Americans. Basically, did drink Starbucks and eat McDonald's. And in a way, the Chinese did begin to behave
Starting point is 00:18:37 more like the Americans, just not in the way that Starbucks expected. Because while China has this large, new middle class, that group has been subject to many of the same pressures that you see in the rest of the world. Chinese disposable income levels have been pretty stagnant. I would even say, I mean, like, if you see a bridge with like 60 girls trying to become the next popular girl streamer that are all sitting on the bridge broadcasting, putting on makeup, the economy there has a problem. Like, I don't live in China. I don't know what the problem is. But all I have to do is see that and I know something's wrong. Okay.
Starting point is 00:19:16 It's like if you see a car on fire, I might not know like, oh, was it the carburetor? Is it the radio? I don't know it, but I know it's not good. That car's on fire. They've also grown tired of the increasing inflation. Only a city is rich. Like Starbucks has been imposing onto its customers. But also, I don't know if you've noticed,
Starting point is 00:19:36 China has been on a bit of an industrial tear lately. The technology is getting pretty wild over there. And the coffee industry has been... I'm thinking about getting one of the who I, the phones, the laptops, pads they have. Like, they're so cool. And trying out some of the new technology. I've thought about doing a tech review channel and doing stuff like that.
Starting point is 00:19:56 It could be a good idea. But Hawaii, I don't know how to say the fucking name, right? I mean, I don't know. But yeah, why? Because I think it would be interesting. That's why. It's pretty simple, actually. Yeah, I think it'd be interesting.
Starting point is 00:20:14 Exception. The main competitor in China, Luckin, has capitalized on the dissatisfaction by offering cheap, really customizable drinks. They focus on mobile only orders and emphasize speed and convenience at like half of the price of a Starbucks. They often have literally zero seating inside the stores. Exactly.
Starting point is 00:20:32 And it's worth really... Look at this, bro. Like, look at this. This right here. Welcome to your cozy, your cozy little coffee shack right here. This is... I'm pretty sure there are prisons that are more ergonomic than this. Oh, geez.
Starting point is 00:20:52 Well for them. It's worked so well that even though Starbucks had a 20-year head start. It looks like a set for a podcast that gets 20 viewers. Luckin now has more stores in China than Starbucks does. Wow. And whereas Starbucks is closing stores in the US, looking is actually expanding into the US. Jesus. Having opened a couple of stores in New York City already.
Starting point is 00:21:13 In fact, Starbucks was so terrified of this competition that at the opening of the very first looking store, Starbucks bought ad space on an empty lot across the street and plastered it with advertising to remind people that they still exist. But meanwhile, Loken was offering $1.99 coffees. This is another thing too, that I don't really do this, but a lot of people have like integration with apps. And I think this is one of the reasons why Walmart has been so ahead of the curve and why they've been edging Target out of the competitive retail market is because I don't think Target has,
Starting point is 00:21:47 Walmart has been so far ahead of the curve with like food delivery, grocery delivery, online ordering, online shopping. Target is not there. And because of that, I think that's why Walmart is just growing and Target isn't. Target's too woke. I don't think that people are, that has nothing to do with it. It doesn't. Like, I went to Target whenever they had like the gay trans kids thing.
Starting point is 00:22:13 And you know what I saw? A construction worker off the office shift for 12 hours, walk right by it, he didn't even look at it. Nobody's paying attention to it. They're fucking busy. They just got home from work. They're tired. They're not going to worry about some weird fucking trans kid thing. Like, yeah, it's bad.
Starting point is 00:22:35 It shouldn't be there as weird. Like, of course it was. But at the same time, that's not the reason why people aren't going to target. That's not it. Average people don't care. No, they don't really care that much. If you push it on them, they'll care. But if it's just there, it's not that big of a deal.
Starting point is 00:22:54 Because of it is. That's anecdotal. It is anecdotal. Like all of my, everything did I talk about, I just make it all up. I just make it all up. And I think to myself,
Starting point is 00:23:08 well, what would people do? That's what people do? Okay, that's probably how it is. Yeah. And by the way, do you remember at the beginning of this video where I made up what I thought the reason was and I was completely right? How about that? Usually whenever I make stuff up,
Starting point is 00:23:27 there's a reason for it wife is anecdotal yeah so I don't know people people really don't like that but yeah more appealing than the other Starbucks is ultimately
Starting point is 00:23:40 there's a mass shooting in Australia Spex there's been a mass spamming in my chat do you think that I didn't see your message specs what's the what's the rule for spamming in my chat
Starting point is 00:24:02 it goes against it's against the rules mate so why are you doing it? Because it's worthy of attention. What do you think that my chat would look like if I allowed everybody to use that justification for everything that they thought was worthy of attention? What do you think my chat would look like? 07. Put him in solitary confinement for one week. Mods. Assign him to a solitary confinement cell with one meal a day.
Starting point is 00:24:40 for one week. I can't, I can't give it a one week's time out for this. And also you have to keep in mind as well that if I now look at your image, I have now reinforced the behavior, which will encourage more of that behavior. You understand that?
Starting point is 00:24:58 So I actually now, by you spamming, now I can't look at it. It's a reinforcement schedule. Psychology. Fast food business, right? It's not a third place. I just had to let people know, bring $1.99 coffees for new customers.
Starting point is 00:25:17 And I think one of those strategies is a lot more appealing than the other. Two bucks? Starbucks is ultimately like a fast food business, right? It's not a third place for most of us. And as such, they've been susceptible to many of the same risks that other fast food places are. The McDonald's CEO recently said in an interview that what we see with middle and lower income consumers is actually a different story. It's that consumers under a lot of pressure.
Starting point is 00:25:38 In our industry, traffic for lower income consumers is down double digits. People don't have any fucking money. money and they can't afford shit. That's the big problem. That's the big problem. And I'm going to say something. People might not like this. When's the congressional hearing about Twitch
Starting point is 00:25:57 Merit Rat Ratel? It's 10 tomorrow a.m. Eastern time. So that means I'm going to have to be live probably at like 8 a.m. or something. Which is going to be very in the lane. I will, I will probably wake up and get up for it. That's my plan. But where?
Starting point is 00:26:12 What do you mean? It's fucking easy. You just wake up. up at 8 a.m. What are you fucking retarded? It's easy. You just do it. The fuck.
Starting point is 00:26:27 Anyway, so it's just, yeah, I have something entertained. Yeah, exactly. Don't sleep tonight. Yeah, I don't know. But we'll see what happens. Okay, we'll see what happens. Going back to this,
Starting point is 00:26:37 people don't have any fucking money. The real thing that I think that this is a big thing and I would love to extend a larger olive branch to a lot of the liberal people and leftist people that are always against me. We are pretty much aligned on all of these economic problems. You might not think it's because of illegal migration. I think partially it is, but the problem still exists.
Starting point is 00:27:06 This is a massive issue, and it's bigger than any identity politics issue. It's probably, I would say, it's pretty much bigger than all of the identity politics issues put together. These graphs and like American purchasing power and the amount of money that people can spend on luxuries and creature comforts just on an everyday basis, this is something that is at the very, very core of all politics. That is the main problem.
Starting point is 00:27:39 It's not illegal migrants. It's not, I know. it's not trans people and if you can believe it it's not even women it's people's purchasing power going down people not being able to afford what they want to afford and what i find to be so sad is that we find ourselves divided over and over and over about these weird identity issues weird culture issues while this graph keeps getting worse i really wish we had a new candidate that could talk through and cut through all the bullshit and actually talk about these real issues.
Starting point is 00:28:22 I feel like Bernie Sanders was the last one that did that. Maybe one day there'll be another one. I don't know. I wish there were more people that were aligned with me on this. Then we talk about them, not fix the problem. I want to fix it.
Starting point is 00:28:47 And it's because people are either choosing to skip a meal or they're choosing to just eat at home. Whereas in the past, consumers would usually trade down. He's wrong, though. Choose is not the correct word. They feel like they have to resort to it. From sitting restaurants to more affordable options when the economy got rough, they're not doing that anymore.
Starting point is 00:29:10 Prices are so high, even at historically more affordable locations. Look at this bullshit. A McChryspie is $10? What? It's $10? What do you mean it's $10? And look at this shit. here. So back in the day, you could get a, what do you call it, a Sunday right here, an Oreo
Starting point is 00:29:36 Sunday. You know how much my dad and I used to get these four? Because like he and I, we would get them after I would get my braces tightened whenever I was a teenager. I had braces. I was a kid. Luckily, you know, that kind of worked itself out, didn't it? Anyway, it was a dollar. One dollar. I remember my mom wouldn't buy me a McFlurry because she said, why would I spend a dollar something on a McFurray when I could spend $39 or 35 cents in order to buy you an ice cream cone and it's the same thing. And I remember almost crying sitting on the floor at McDonald's because my mom wouldn't buy me an Oreo McFurray.
Starting point is 00:30:18 Very long ago, this was 3,000 years ago, but I still remember the days. and now the cones are $3. Bro, you know what they did? They moved the decimal point. Straight up. It used to be in front of the three. Now it's behind it. What the fuck, man?
Starting point is 00:30:42 Childhood trauma? Yeah, and now I'm having adulthood trauma. Bro, you have to save us from this? If I ever became president, I would make it a mandatory federal law. that ice cream cones had to be $1. Yes, they're $1. That trading down to McDonald's is not really a feasible option anymore.
Starting point is 00:31:08 And a similar story is playing out with Starbucks. They're not really fancy enough to attract the clientele that would go to an independent coffee shop, but they're not affordable enough to satisfy the people who are looking for a quick way to drink some caffeine. And all of this has been compounded by the fact that society has fundamentally changed quite a lot in the last five years. Yes. The idea of sitting down for... an hour to sip a coffee with friends like Howard Schultz one streamed is basically gone. Individualism has really won and people's consumption choices are affecting that. And so the fact
Starting point is 00:31:36 that the CEO... I think, I don't think it's individualism that's one. I think it's convenience that's one. It's convenience and the prevalence of technology. But you could say that that enables individualism. So really depends. It's, I guess, a matter of semantics. But I think that primarily the driving force is the convenience that different types of technology now provide, that people used to have to provide in the past. Is trying to focus on bringing back the cozy new interiors and making Starbucks feel homie. I think it might be too little too late.
Starting point is 00:32:07 Meanwhile, McDonald's looks like a minimum security person. Like, if you go and you ask one of the ladies there for a straw, it's like going and asking somebody for a fucking knife. They seem to be convinced that they'll be able to go back to their former glory just by using AI and doing some renovations. I need a gun for my Big Mac. But I'm not sure how much people actually even want that today, least of all from their local Starbucks.
Starting point is 00:32:31 And amongst all of this climate, there are so many more headwinds for them. Coffee inflation is 10 times the average inflation for food, thanks to tariffs and really bad harvest. Oh, my God. And customers have more high-quality alternatives than ever before. But I guess we'll see. My dad knew a lot about coffee and tea leaves, and like he had special-ordered tea leaves and coffee and everything.
Starting point is 00:32:53 I don't know a lot about it myself, but I do think that, yeah, probably a lot of it came from Asia, so it makes sense that, you know, it was done that way. Oh, I'm going to stick to my little maca pot and occasional outing to a nicer cafe. And I don't think there's much of a future for Starbucks in my life outside of airports and train stations. Yeah, airports.
Starting point is 00:33:13 But let me know what you think. If you think the price is bad here, go to the fucking airport and then you'll have a really good time. Oh, God. So we got the AK HeroMT. You ever try his tea? I did. I tried it.
Starting point is 00:33:27 I'm just not a big fan of it. I've watched a number of his videos before. I think this guy's really well spoken. He's, I think he brings, I mean, obviously like, of course I agree with him.
Starting point is 00:33:37 All the reasons why I thought Starbucks was closing were the same reasons that, you know, it is closing. So yeah, there he goes a good video. Make sure to give it a like. Give the guy a sub, man. I like him a lot.
Starting point is 00:33:47 And so, you know, it's good to try and support creators that way.

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