Responding to Competition, Starbucks Lowering Some Drink Prices
"As it reported a 77 percent drop in quarterly profit, [Starbucks] on Wednesday also said it will adjust its pricing in some markets, raising prices of some of the more complicated drinks, while lowering those on basic drinks. For example, Starbucks will offer a 'grande' size iced coffee for less than $2, shaving as much as 45 cents off the price, depending on the market." [Wall Street Journal]
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5 Comments:
Yet another bit of positive proof that their real competition, whether they'll admit it or not, is places like McDonalds, Dunkin Donuts and Tim Hortons.
Quality driven independents are not competing against those places and don't need to but Starbucks continues its efforts to publicly posture itself as serious quality driven operation while trying to compete with the fast food chains on price and product offerings.
It's frustrating - they are a very well run operation with clean stores and a high level of consistency and they source coffee that is IMO vastly superior to the beans used by McD, DD and TH. That advantage is totally negated by their "signature roasting style". I just don't get it.
phaelon56 at 1:18PM on 04/30/09
I'll keep going there until my gift card runs out. There are really plenty of better (and cheaper) coffee options out there.
hungryhungryhippo at 1:41PM on 04/30/09
Lemme spread a bit of iced-coffee conspiracy theory on y'all. When you order an iced coffee at Starbucks, they fill your clear cup up to the top green line (about 2/3 full). So for a small iced coffee, retail price varied, you're getting 2/3 of a cup of coffee but you'll get a full cup when you order it hot.
Pissed and ready to test this theory, I've ordered iced coffee in a few lower Manhattan Starbucks and requested no ice. Results? No dice. "Sorry, we're only allowed to fill it up to the green line."
Try it out! So lower prices at Starbucks? Start with lowering the iced coffee price by 1/3.
nataliepo at 2:15PM on 04/30/09
Iced coffee is brewed stronger, fwiw.
apsalar at 2:59PM on 04/30/09
It's my daily indulgence to myself. They'll never lower my latte price...it's been a solid $4.45 for two years now. I'm aware it's overpriced and blah blah blah. But I like it, and it's my money. I I bet if they lowered prices here, in my college town, they'd get more business than they already do. The one I live above is always PACKED,
sweethunibabi at 6:26PM on 04/30/09