It’s not surprising if you’ve heard this already, but Starbuck is testing $1 coffee with free refills. No, the coffee isn’t leftovers, and it’s definitely not a going out of business sale. Starbacks is facing steep competition from fast food franchise giant McDonalds. They will attempt to gain back some of its market share they lost when McDonalds started serving its own brand of premium coffee. Initially Starbucks responded by selling breakfast items in its stores, but it seems are now taking a grass roots approach.
The new price offering will be tested in its Seattle stores initially. If you’re familiar with Starbucks $1.50 “short” brew, now the secret is available to the general public. The price is expected to put pressure on other competing specialty coffee houses, which usually do not provide refills. You’ll still find this kind of service in restaurants, and gas station coffee is still the cheapest, both of which will not be affected by Starbucks new offering.
If the public will accept cheaper coffee when they would initially pay $4 a cup is still unknown. If you already like the coffee you get on the road, you might not change where you get coffee, especially if you needed gas at the same time. If you’re a long time Starbucks patron who regularly pays $4 or more for coffee “made exactly for you”, might not care if it’s cheaper, so long as it taste the way you want.
Source doc: msn
