what is starbucks' direct cost of production for a typical pound of
coffee used by one of its retail stores?

average New York "C" contract for coffee is about $1.00 per pound for
green.  Specialty premium may be another $0.50 or so.  Add $.05 for
freight and we are at about $1.55 greeen (unroasted)at the plant dock
door.  Coffee loses about 20% weigth (shrinkage) in the roaster so the
roasted cost is $1.93 plus $.05 for direct labor, say 1.98 out of the
roaster.  The bag & valve is probably $0.12 plus another $.25 plant
overhead, total $2.35 fob plant.  Add maybe $0.15 freight to the store
plus store overhead of maybe $0.25 plus corporate sales & marketing of
$.30 = $3.05 as a reasonable guestimate, probably less.