Guess Who's Testing $1 Cups and Free Refills?
Howard Schultz is shaking things up. According to the Wall Street Journal, Starbucks is testing a $1 cup of drip coffee in some Seattle-area stores.
The eight-ounce short size isn't on Starbucks's menu but has long been ordered by in-the-know patrons. Typically, a short, brewed coffee would sell for around $1.50, although that can vary by several cents depending on the store. Starbucks is also testing the offer of free refills for traditional-brewed coffee in the Seattle area.Opinion at Starbucks Gossip is split. "I think it's a VERY SMART move by Starbucks," says the first commenter, while someone else notes that it "Seems a little desperate to me. We can't sell our coffee, so let’s give it away! Why is this a good idea?"Ms. O'Neil wouldn't elaborate on the specifics of the tests or say how many stores are offering it. She said the tests aren't indicative of any new business strategy.
The $1 test undercuts even low-cost coffee purveyors, including McDonald's Corp. and Dunkin' Donuts, a unit of Dunkin' Brands Inc., whose coffees generally start in the low $1-plus range. Although most sit-down restaurants top off customers' coffee free of charge, specialty cafes have largely stayed away from the practice.
The important question remains unanswered: which local stores are offering this? If you've found one, let us know in the comments.
Photo: Scarequotes (a.k.a. the author)
