Thursday, November 20, 2008
The Starbucks Theory
...I propose the Starbucks theory of international economics. The higher the concentration of expensive, nautically themed, faux-Italian-branded Frappuccino joints in a country's financial capital, the more likely the country is to have suffered catastrophic financial losses.The idea is that anyone paying $5 for a cup of coffee is in the middle of a bubble. America has a gazillion, the UK 256, Spain 48 and uhem, Dubai 46. China has over 200.
And India: Zero.
But that doesn't help. Pakistan and Iceland have zero too. It's only the ones with a large number that need to be worried I guess.
On a purchasing power parity basis, I think we have a reasonably high concentration of Coffee Day (Rs. 40) and Barista (Rs. 55) outlets. Maybe a smaller bubble for us...sometimes too much caffeine can be bad for your economy?
Labels: Crisis2008
1 Comments:
Last year there were news reports that Biyani of Future Group was in talk with Starbucks for JV in India. We are lucky that it was called off. But think of it this way: even the rumour of them coming to India created a bubble!
With regards
Harshad (not Mehta)
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