A changed man.
As you know I find Starbucks to have the same appeal as a massage with sandpaper. But the place has its uses.
A Tall Tea (Tall is the American word for small, apparently. I have also learned that people who write computer code are now called Engineers) costs £1.55.
Taking off the sales tax and it is sold to me for £1.40. The depreciation of the mug is say 5p. The tea bag costs 5p. The hot water costs 5p. The labour to wash up the cup, fill it up and collect my coins is 5p. The cost of counting my cash at the end of the day and banking it is 5p (the same as a credit card charge).
So the profit before occupation costs is £1.40 minus 25p equals £1.15.
It takes me an hour to drink the tea. My chair and table and the lights above and the rental costs about £10 a day or £1 an hour.
£1.15 minus £1 is a 15p profit to Starbucks or 15p/£1.40 equals 10% profit.
During this hour I skyped and emailed and worked. A 4 person meeting room in Regus is £60, or £15 a person.
So my 1 hour in Starbucks saved my company £13.45 and I got a free tea plus getting the opportunity to do some people watching and listening.
I love Starbucks.
However there is a sting to my jolliness for on Saturday I spent the afternoon having tea with my aging grandmother at Fortnums. The tea room is a bit too Canadian for my liking but the tea is good. Whilst I was discussing with her my new revelations about Starbucks, I heard shouts and some old aquaintences from my student protest kettling days causing havoc. My beloved Mayfair was torn apart by some rioting rioters but thankfully it was light and order was restored.
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