Tall Profits
Entrepreneurial | (0)
According to Starbucked: A Double Tall Tale of Caffeine, Commerce, and Culture By Taylor Clark
When the 8-ounce cup of coffee (the "short") was removed from the menu, the "tall" size increased profits by 25 cents per cup for only 2 cents of added product.
Contrary to popular opinion, Starbucks increases sales at rival nearby coffeehouses.
The average customer spends $4.05 per visit for coffee; the average fast-food-restaurant visitor spends $4.34 for an entire meal.
For a cup that costs $3.40, at least 40 cents is profit.