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Tom & Christian's Human Risk Talk

The Human Risk Podcast

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The Unprofitable Business Model of Starbucks

Roxanne Jones: I'm struggling a little bit because on the one hand they sound amazing, right? So you can rent office space on a very flexible basis. And so it strikes me as being a very 21st century model that's actually from a customer's perspective pretty amazing. But from a business perspective, it's insane. The guy's getting paid huge amounts of money for setting something up that is in essence not a profitable business. It takes long term leases that it has to invest in and then it's got customers on short term leases. Talk about a mismatch that we've seen cause problems for financial services before.

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