...16 coffees tassimo pods is £3 and 16 Dolce Gusto pods is £3.33...
Not outrageous really at 19-21p a cup. Consider that the espresso beans I buy in bulk are £13 a kilo, or 1.3p a gram, and I use 15g to fill the Gaggia's double basket, so that's about 20p a double. Not sure how much coffee you get in a pod but even if it's half as much it's still not orders of magnitude different in unit cost.
My concern would be shelf life. Coffee degrades quickly once it's ground, although the pods can presumably help by excluding oxygen. A friend has a pod machine (can't remember which system) and told me once that he can return the empties for re-use, which helps with the environmental concern. Don't suppose many do, though.
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