Coffee Queues and Picket Lines: An Investor's Guide to Restaurant Unrest
The Inevitable Knock-On Effect
Let’s be honest, the sight of Starbucks baristas on a picket line was hardly a shock. When you push for ever-increasing efficiency and profits, the people making the coffees eventually push back. It was only a matter of time. While the headlines focus on the drama, the real question for an investor is a rather more cynical one. Where does the money flow when one giant stumbles? The immediate answer, I think, is almost insultingly obvious.
The average person, denied their morning latte, isn’t going to suddenly take up home roasting. They’re going to pop into the next place that can serve them something hot, brown, and caffeinated. This puts titans like McDonald's in a prime position. They already have the coffee, the breakfast muffins, and most importantly, the open doors. They can absorb this displaced custom without breaking a sweat. It’s a simple, short-term tactical win, a little ripple of good fortune created by a rival’s misfortune. Likewise, the parent company of Tim Hortons and Burger King could see a welcome, if temporary, boost.
