Sunday, June 28, 2009

Point one of the Starbucks index?

We learned in Ec10 about the Big Mac index, which the Economist publishes as an unofficial way to represent exchange rate theory. (The going rate for a Big Mac right now is CHF 6.50.)

But what about a Starbucks index?

Well, of course, McD's is nearly everywhere and the Big Mac is a reliable indicator. But anecdotally, the Starbucks index would be more relevant to Gen X and Y, who grew up drinking brand coffee, know the high school stereotypes associated with a Vanilla Chip Frappucchino, and frequently lounge ("work") there for the free wi-fi. Here's a start: I paid CHF 6.70 for a tall (aka small) mocha. With my US $1:CHF 1 ratio (since that's what I get, more or less, when I exchange USD here), that means I paid...$6.70.

(Admittedly, maybe the premium is from the fact that they were open on a Sunday night.)

So, here's the goal. If you are reading this blog, please comment below or email me ( with:

  1. the price of a tall mocha at your local Starbucks (the local currency)
  2. how sad/elated you are at the price, especially compared to buying other beverages wherever you are.
  3. your location -- you can do this whether you're in or out of the States, or just traveling everywhere!
Hopefully, I'll compile a list for Foodivia to gawk over.

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