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posted by LaminatorX on Thursday April 17 2014, @12:49PM   Printer-friendly
from the How-about-pet-food? dept.

A new app launching in New York promises coffee connoisseurs the opportunity to enjoy limitless coffee for $45/month. We already know of the health benefits from drinking coffee so now you can save your wallet whilst you save yourself.

The app offers access to a half dozen independent coffee shops to begin with but this is likely to expand over time. Don't want to commit to $45/month? They also offer pre-paid 10-25 cup plans.

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  • (Score: 5, Funny) by oodaloop on Thursday April 17 2014, @01:04PM

    by oodaloop (1982) <reversethis-{moc.ohoz} {ta} {ffonimakj}> on Thursday April 17 2014, @01:04PM (#32618)

    I'm going to put those people out of business.

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    • (Score: 2) by Nerdfest on Thursday April 17 2014, @03:28PM

      by Nerdfest (80) on Thursday April 17 2014, @03:28PM (#32704)

      I see no mention of quality. In ventures like this, when profit dips, so does quality generally.

      • (Score: 2) by frojack on Thursday April 17 2014, @05:04PM

        by frojack (1554) on Thursday April 17 2014, @05:04PM (#32739) Journal

        Because it is just a pre-paid card to EXISTING coffee shops, those shops have to maintain their quality, or another shop on the list will be selected by the card holder.

        Our members purchase prepaid plans to get discounted drinks at some of New York′s best coffee shops.

        The list of shops in on the first link. (I know, I know).
        They are all independent pre-existing businesses.

        The coffee shops simply bill via the CUPS (app developer), rather than billing the customer. Its like a visa card for coffee shops.
         

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      • (Score: 1) by N3Roaster on Thursday April 17 2014, @05:28PM

        by N3Roaster (3860) <roaster@wilsonscoffee.com> on Thursday April 17 2014, @05:28PM (#32752) Homepage Journal

        I'm not in New York and I'm not privy to the deals involved so I could well be wrong about this, but my gut sense is that once the novelty wears off the shops involved will pull out. It's probably not bad deal for shops in the short term to potentially get some exposure and word of mouth from people who might otherwise not have tried them but if the subscribers become a significant fraction of sales it's likely not sustainable. Best case for the company selling the service seems to be to get enough attention for an attractive buy out offer before the whole thing collapses. It's not really a model that can expand to most of the country. As such, expect to see this overexposed in the press.

        • (Score: 1) by urza9814 on Thursday April 17 2014, @10:22PM

          by urza9814 (3954) on Thursday April 17 2014, @10:22PM (#32860) Journal

          I doubt they'll need to.

          How much you think people will use this? I'd be willing to be at least half the buyers will use it just to get one cup on their way to work, and maybe an occasional weekend stop. So we'll say a maximum of one cup a day for these folks, 30 cups a month, which works out to $1.50/cup. Not quite the profit margins they're used to perhaps, but certainly still profitable for what is essentially a cup of hot water! Plus it guarantees repeat business.

          It's basically a group rate discount for the coffee shops. Sounds like a pretty good deal for them to me, particularly given that the people who would use this probably significantly overlap with the people who would otherwise go to Starbucks.

          • (Score: 1) by N3Roaster on Friday April 18 2014, @12:14AM

            by N3Roaster (3860) <roaster@wilsonscoffee.com> on Friday April 18 2014, @12:14AM (#32904) Homepage Journal

            You might be right about the typical use case but I don't think that's how the company offering this will spin things publicly. Your math also seems a bit off since there's a cost associated with running the service so if the shop actually got that $1.50 the service would run out of money. The discount is probably a little steeper than that and when you consider labor and overhead associated with being able to serve that cup of mostly hot water, well, consider that this is a group of people that still has people who fret over whether or not it makes sense to have WiFi available for customers.

            Still, to me this smells like a short term fad. I expect it can expand out to maybe half a dozen to a dozen other cities but that four years from now nobody will remember that it existed. I could be wrong about that. Wouldn't be the first time.

            • (Score: 1) by urza9814 on Friday April 18 2014, @12:43AM

              by urza9814 (3954) on Friday April 18 2014, @12:43AM (#32910) Journal

              You might be right about the typical use case but I don't think that's how the company offering this will spin things publicly.

              Oh of course. Isn't that how these things always work though? They'll tell the potential customers: "Buy all the coffee you want!" while telling the coffee shop owners "Our metrics show an average purchase of one cup a day" or something.

              Your math also seems a bit off since there's a cost associated with running the service so if the shop actually got that $1.50 the service would run out of money.

              True. Maybe just $1/cup. Or maybe the service could be ad supported. Maybe a fixed cost per month. I dunno, I didn't RTFA ;)

              when you consider labor and overhead associated with being able to serve that cup of mostly hot water

              True, I did think about that, but that's largely a fixed cost. They're already paying this. That's kind of where my mind was going when I mentioned that I think this will largely attract the Starbucks crowd -- so unless they get a HUGE influx of customers, it's practically free money, because they're sure as hell not gonna hire more employees for it otherwise. Could hurt very bad though if a bunch of their regulars start taking advantage of this though. That may depend on how it's advertised -- as well as who and how regular their regulars are.

              consider that this is a group of people that still has people who fret over whether or not it makes sense to have WiFi available for customers.

              That seems a very different issue. It's not about the cost of the Wi-fi, it's about being overrun by people sitting on their laptops, not buying anything and driving off potential actual customers by occupying all the tables.

              Still, to me this smells like a short term fad. I expect it can expand out to maybe half a dozen to a dozen other cities but that four years from now nobody will remember that it existed.

              Oh yeah, that seems quite likely to me as well. But I don't think it will be because the coffee shops abandon it; rather I bet it will fail due to a stagnant and declining user base making the provider decide it's not worth it anymore.

              • (Score: 2, Insightful) by N3Roaster on Friday April 18 2014, @01:24AM

                by N3Roaster (3860) <roaster@wilsonscoffee.com> on Friday April 18 2014, @01:24AM (#32919) Homepage Journal

                consider that this is a group of people that still has people who fret over whether or not it makes sense to have WiFi available for customers.

                That seems a very different issue. It's not about the cost of the Wi-fi, it's about being overrun by people sitting on their laptops, not buying anything and driving off potential actual customers by occupying all the tables.

                On the surface it seems like a different issue, but it really isn't. Some places can't support such an offering and shouldn't, and these places have made the decision to just not do it or have gone out of business. Other places can manage it just fine and can clearly see the business case for it. Then there are a lot of places that have some other problem that they need to fix but they get hung up on the technology and fail to see what problem they should be addressing. But if it's not people on laptops using the WiFi it's students doing homework or groups holding meetings or... And in most places these people aren't a problem, they're an opportunity. (Full disclosure: my "WiFi squatters" actually bring in a lot of business but YMMV) Sorry, I'm just tired of all the misguided whining I see about it. So I can easily see this as having the same perception problem, but this is easier to drop because, especially if they're able to convert these people into regulars, they're seeing the discount instead of the full price on every one of those drinks. It's a little more tangible.

                • (Score: 1) by urza9814 on Friday April 18 2014, @01:45AM

                  by urza9814 (3954) on Friday April 18 2014, @01:45AM (#32922) Journal

                  I don't really disagree with you on that not being the real (or at least full) issue. Of course you can do 'one hour free wifi with a drink' type schemes (I think Panera does this?) or figure out other ways to manage it. That requires some technical skill though that small independent shops may not have. And of course not offering it can be a business strategy too -- apparently there have been some coffee shops banning electronics entirely as part of their marketing strategy/ambiance. That only works if you're the only one doing it though.

                  But I still think this is different. Free wifi, people holding meetings, whatever it is -- all of that can provide marketing, but it doesn't *directly* provide revenue. This does.

                  • (Score: 1) by N3Roaster on Friday April 18 2014, @02:11AM

                    by N3Roaster (3860) <roaster@wilsonscoffee.com> on Friday April 18 2014, @02:11AM (#32930) Homepage Journal

                    Disagree that those things don't provide revenue. Few will take a table without buying anything. It's more about turning the tables over (though if the place isn't packed, what's the harm?) or getting people to buy enough and the solution to that could be as simple as harder chairs or louder music. Or it could be taking the time to ask the one person with stuff spread out over the largest table if he wouldn't mind moving to a smaller table or share with the one person with stuff spread out over the other big table to make some room for the group that just came in. A little polite conversation often does wonders to train customers to be more considerate of each other without giving the impression that you're trying to chase anybody off. Where I see the similarity, and where I was really going with this is that both are likely to be problems of false perception rather than a rational evaluation based on in depth observation of reality.

    • (Score: 2) by elf on Thursday April 17 2014, @05:49PM

      by elf (64) on Thursday April 17 2014, @05:49PM (#32759)

      From what I read the unlimited deal look like a one off as its new. If I lived there it sounds like a great deal to take advantage off. The premium coffee deal is $85, I think thats quite a lot of coffee to drink in one month though

  • (Score: 3, Funny) by Woods on Thursday April 17 2014, @01:07PM

    by Woods (2726) <woods12@gmail.com> on Thursday April 17 2014, @01:07PM (#32622) Journal

    Until Google Coffee comes to my area, and I can enjoy significantly faster unlimited coffee for a slightly higher price.

    • (Score: 3, Informative) by dotdotdot on Thursday April 17 2014, @01:25PM

      by dotdotdot (858) on Thursday April 17 2014, @01:25PM (#32631)
      Google Coffee would probably be free, but it would mine your taste buds for whatever else you ate or drank.
      • (Score: 2) by Woods on Thursday April 17 2014, @01:35PM

        by Woods (2726) <woods12@gmail.com> on Thursday April 17 2014, @01:35PM (#32634) Journal

        Hmm... Indeed it would, but then it would make suggestions on what other drinks/foods it thinks I would like. That would actually be pretty awesome. I would sign up for that service.

        • (Score: 2) by oodaloop on Thursday April 17 2014, @01:37PM

          by oodaloop (1982) <reversethis-{moc.ohoz} {ta} {ffonimakj}> on Thursday April 17 2014, @01:37PM (#32636)

          As long as there is a Safe Search option. Nudge, nudge, wink, wink.

          --
          Many Bothans died to bring you this comment.
          • (Score: 2) by Woods on Thursday April 17 2014, @01:48PM

            by Woods (2726) <woods12@gmail.com> on Thursday April 17 2014, @01:48PM (#32643) Journal

            Geeze dude. You need help. Taste buds are no place for rule 34.

          • (Score: 2) by SleazyRidr on Thursday April 17 2014, @04:24PM

            by SleazyRidr (882) on Thursday April 17 2014, @04:24PM (#32726)

            I just had a vision of a tongue-mounted camera filming some cunnulingus in action. It would be pretty sweet.

    • (Score: 2) by c0lo on Thursday April 17 2014, @01:36PM

      by c0lo (156) Subscriber Badge on Thursday April 17 2014, @01:36PM (#32635) Journal

      I think I will wait.

      Me too. That is ... until they'll extend their service to include, every day for $45/mo, nice crispy strips of bacon.
      I just couldn't refuse such an offer, could you?
      (grin)

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    • (Score: 1) by dast on Thursday April 17 2014, @04:22PM

      by dast (1633) on Thursday April 17 2014, @04:22PM (#32724)

      Yeah, you can wait until Google Coffee comes to you. And in a few years, after you've transitioned all of your family and friends to using Google Coffee, they will cancel the service, expecting you to find a replacement out on Google Play.

  • (Score: 2) by Blackmoore on Thursday April 17 2014, @02:16PM

    by Blackmoore (57) on Thursday April 17 2014, @02:16PM (#32656) Journal

    I'm gonna need that in an IV form. too much to do.

    • (Score: 1) by dast on Thursday April 17 2014, @04:28PM

      by dast (1633) on Thursday April 17 2014, @04:28PM (#32727)

      No, no... That tube doesn't go in your vein. ;)

      • (Score: 2) by Blackmoore on Thursday April 17 2014, @05:25PM

        by Blackmoore (57) on Thursday April 17 2014, @05:25PM (#32749) Journal

        it had better. because if you are inferring that i have to take this through some already existing hole - I'll be charging you $2k and hour.

  • (Score: 0) by Anonymous Coward on Thursday April 17 2014, @04:50PM

    by Anonymous Coward on Thursday April 17 2014, @04:50PM (#32734)

    Back in my day, when you give money at a fixed interval for access to a physical product it's called a subscription.

    • (Score: 2) by frojack on Thursday April 17 2014, @05:15PM

      by frojack (1554) on Thursday April 17 2014, @05:15PM (#32745) Journal

      Service seemed like an odd choice of words to me as well.

      They appear to be servicing coffee companies, by handling the billing and payments without having to deal with making change or running credit cards. If you have one of those "pay by bonk" (google it) phones it can be very convenient for both customer and store operator.

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  • (Score: 3, Informative) by egcagrac0 on Thursday April 17 2014, @07:06PM

    by egcagrac0 (2705) on Thursday April 17 2014, @07:06PM (#32789)

    As usual, the summary is misleading.

    1. It's not unlimited. It's one beverage per subscription per half hour.

    2. Espresso isn't included in the base subscription; that's the premium $85/month option.

    It's still not a bad deal, particularly if you get 2 beverages a day (one morning, one afternoon..).

    • (Score: 2) by carguy on Thursday April 17 2014, @07:36PM

      by carguy (568) Subscriber Badge on Thursday April 17 2014, @07:36PM (#32807)

      Do they check IDs? If a few people started sharing a card the service/subscription deal won't last long.

      • (Score: 2) by egcagrac0 on Saturday April 19 2014, @05:04PM

        by egcagrac0 (2705) on Saturday April 19 2014, @05:04PM (#33391)

        It's not a card; you run your smartphone app to get a redemption code which the coffee vendor redeems with the service administrator.

        My understanding is they require you to link it to a facebook account.

    • (Score: 3, Insightful) by dmc on Friday April 18 2014, @12:15AM

      by dmc (188) on Friday April 18 2014, @12:15AM (#32905)

      As usual, the summary is misleading.

      Is SoylentNews really that mature already? I'd just add that the summary sounds entirely like a soylvertisement to me. The health benefits link is minimally redeeming, but this nerd would have preferred a little more legwork and links to at least two studies on both sides of that issue from the past decade. As with the health benefits of alchohol, I recall seeing ping-ponging studies come out over the last decade. I hardly think this is 'settled science' at this point.

      • (Score: 2) by egcagrac0 on Saturday April 19 2014, @05:15PM

        by egcagrac0 (2705) on Saturday April 19 2014, @05:15PM (#33392)

        Is SoylentNews really that mature already?

        Summaries are a form of lossy compression. Some implementations of the summarization algorithm produce results less misleading than others, of course.

        1 coffee every 30 minutes while the shop is open is not limitless, it's clearly rate-limited.