Don't get too excited about Starbucks's new $1 coffees

I am impressed if Starbucks experiments with coffee pricing in order to maintain a competitive edge. What is wrong with that?

I prefer Starbucks coffee for the ambience and the morning cup to keep me awake while getting through the day.

I prefer to stop at a Starbucks for coffee rather than at McDonalds as I hate fast food and that french fry smell with my morning coffee ugh.

I'm not sure how or when this might spread to the rest of Starbucks Nation but I definitely think it's a good idea. Starbucks makes great coffee (my preference-- though others may disagree). But they need to respond to the times and, frankly, times are tough. "Competition" from McDonald's and Dunkin' Donuts is only part of the problem. People simply have less discretionary income and that means less money for a treat like a mocha or a latte. Any effort on Starbucks part to give the consumer a break is smart business. (They've offered dollar kids drinks for many years.)

McDonalds has been trying to zero in on the coffee crowd for a while. Their advertising (as well as that of DD's) has taken advantage of the recent Starbucks backlash by portraying their stores as a place where the average coffee lover can score a cup of quality joe without feeling intimidated or out of place. (As a long time Starbucks customer, it seems to me that in decent stores that are run by friendly, skilled, and well-trained staff, NO one feels 'out of place' or intimidated). And now the latest news: McD's is sinking major dollars into creating "Mc-cafes" complete with "Mc-baristas." Sorry, but I have a hard time picturing it. I do eat at McD's sometimes-- happily (and cheaply). But I'm not likely to get my coffee there and I certainly can't imagine hanging out there for a couple of hours reading the paper and chatting with friends. [It's called "fast food" for a reason: pay for it--get it fast-- and GO]. By straying from what they do best, McD's is taking an enormous risk. As for their "premium" java, I have no idea why that coffee garnered such praise from Consumer Reports last year during the much-hyped taste test. Maybe CR did their testing at an unusually good McD's location (where they actually got a fresh cup) and maybe they happened to visit a particularly awful Starbucks store). In any event, if this is Starbucks' way of fighting back by creating their own "dollar menu," then kudos to them. It's about time they figured out that making an effort to keep prices down is just as important as providing good service and a quality product. From a business standpoint though, I would suggest that they modify the free refill policy and offer ONE free refill. They charge around 55 cents for refills now. A 50 cent cup of coffee ain't a bad deal, either . . .

As a daily Starbucks customer, I welcome the $1 cup of coffee. The Company already has a solid reputation brand-wise and the product speaks for itself.

Back in the day when Starbucks was just reaching out of Seattle I guess one could consider them an "elite" coffee shop. But nowadays, you find more of them on one square city block than any McDonalds or Dunkin Donut. And in many ways, Starbucks can easily be thought of as "the McDonalds of the Coffee shop sector" - recognized and desirable mix of product that remains fairly consistent world-wide.

So, does this "regular" Starbucks customer feel a $1.00 cup of coffee cheapens the brand? No way!

If anything it gives me options. Maybe I don't want the regular mocha or latte this time, I can still order something for $1 (plus tax) and sit down with friends for less money. HELLO...We're in (or heading they say...) into a Recession so every penny counts.

And I believe that a $1.00 coffee will certainly get the attention of the price-conscious consumer who would usually pass the entrance of Starbucks on their way to 7-11 for the cheap cup. I mean, if one could get a better cup of coffee with more options and flavors for roughly the same price, what's to loose? If anything, the newbie eventually tries the other menu selections and becomes hooked just like the other Starbucks slaves you see lining the store or drive-ins each morning.

The sooner they roll this thing out to the masses the better!

starbucks needs to continue selling premium priced coffee and not compete in the dollar war. mcdonald's is already showing weakness in the ranks of store managers and employees. oh and please change your oil don't blame the consumers because you chose to sell your food cheap.

I totally agree with the core article on Starbuck's cheapening its brand and compromising everything they have worked for with this new $1 coffee and refill program. Of course, SBUX can't just sit idly and let sales erode. But for all the perfect reasons pointed out in the article, the chosen tactics are wrong. Starbucks future success depends on their keeping their best people, making sure their stores provide pristine service in a shockingly clean and fresh environment, and maybe showing just a bit more care with their site selection process...not drastically slowing new-store openings, but making sure they have chosen excellent, not just good, locations. Hey folks, it is not like the ship is sinking. SBUX's stock just lost its momentum. Sales in general, cash flow, etc, remain strong. And to panic and over-react would be a big mistake on management's part. I am not a blue-blood, nose-in-the-air customer. But Starbucks can't afford to lose the "specialness" they have established in the customers eyes.

A letter to Howard\:

Dear Howard,

The stray from Starbucks has little to do with the price and everything to do with the experience. If Starbucks can recapture the coffee house experience, the price will be of minor importance. But lowering the price without recapturing the coffee house experience is simply just selling coffee for less and making me feel I've been paying too much all along. All Starbucks did with this lastest price reduction was appear to be desperate by lowering the value, along with the price.
The original in decor, indigeous to the area coffee shop is still in demand. Unfortunately, the competition is capitalizing on Starbucks becoming generic and their stores mundane. Newer sbux appear to look like a fast food restaurant with better paint colors. I write this from Cafe Dolce, a new indy cafe in downtown Spokane. Sure there are several Starbucks close by, but the lure of this refurbished older building with exposed brickwalls, uneven hard wood floors, handcrafted expresso drinks and FREE WIFI for all is too much for this ad exec and freelance writer. It called to me like a siren, and though this is my first time here - I'm hooked.

How to fix starbucks 101

* Recapture the coffee house experience.
Original in decor, in unique buildings with character and soul.

* Tie the stores into the community by supporting local causes. The bigger a company becomes, the smaller they need to act. Support local music and art. FREE WI-FI!

* I have a feeling SBUX does not want to give up the drive thru, airport, grocery type business in an effort to recapture the coffeehouse business. I understand why, but believe there is room for both. But make a distinction for the consumer. Such as, Starbucks Coffee House and Starbucks TO-GO. In my life there is definately room for both depending on my circumstances.

*Make SBUX employees LOVE their jobs by recapturing the rep that SBUX is a great place to work. Put money into your partners because they are the ones that effect the customer. If this is accomplished they will never have to worry about finding good employees - they'll be lined up.


Howard, I'm cheering you on!

All for now,

Laurie
Stockholder and concerned customer, who really is trying to be loyal.