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Starbucks Wants A Dollar for Coffee

It’s a eight ounce cup and Starbucks will sell it for a dollar. Starbucks has started to roll out this offer:

“Starbucks, long a standard-bearer in charging a premium for specialty java, has started selling a $1 cup of joe and is providing free refills on drip coffee in some Seattle-area stores as the ubiquitous chain works to win back customers.”

link: Starbucks — for a buck

Starbucks is responding to the competition, especially from McDonald’s. The free refill is also a way of keeping the new and regular customers in the store for a bit longer. That extra time imprints the ‘Starbucks experience’ upon the new customers. Soon, in co-operation with Apple, a part of that experience will be the possibility of buying and downloading the music, that is playing in the store. It also gives the store an opportunity to offer a sample of some of their more expensive offerings.

While this dollar offer appears as a customer focused gesture, Starbucks also is developing a purchasing pattern. Starbucks wants to be part of people’s daily routine. And undoubtedly, sometime in the future, there will be a slight increase in this coffee offer.

Catherine Forsythe

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