Over the past week I had noticed a number of new ads for Starbucks. I have seen full page ads in the New York Times and USA Today. I have a feeling they were in many, many more newspapers and magazines but those are the ones I saw. The campaign seems to be focused on quality, value and values at Starbucks.
- The question is, "Does it work?"
- If you are a Starbucks customer, how do you feel?
- Does this make you feel closer to the brand?
- Does it represent what Starbucks is all about?
- If you are a fan of Dunkin Donuts, Peets Coffee, Seattle’s Best, or McDonalds, does this make you change?
- How do you feel about the campaign?
- In your opinion who has the best coffee?
I look forward to your comments and seeing what you think about this campaign.
Christine Cook says:
Ah…doesn’t do anything for me. I was a loyal Starbucks drinker…1-2 a day at the Starbuck’s…$4.68 per drink. Ouch! It just got to expensive so I purchased a Kerig and now pay .40 per cup. Kerig has a ton of flavors and it’s great. Some include: Wild Mountain Blueberry…sounds odd but it’s amazing and makes the place smell great. Southern Pecan, Peach, German Chocolate Cake (my personal favorite), Cinnamon Pastry (another fave), Crème Brule, Hazelnut, Vanilla, Donut Shop, Espresso, Cappuccino and ever typical favor and regular coffee in full leaded, half lead and no-lead (caffeine : ). Kerig rocks so much we bought another one so now we have one for the clients and one for the staff. You can also buy “fair trade” brands that give back to the community which we do a lot of. Heifer International, the Rainforest and others. It’s the B – A – S – T (best) as my daughter used to say when she was a kid and couldn’t spell! P.S. I might hit a Buckstars once a month now…they lost a lot of revenue when I jumped cups for sure! TRY A KERIG! If you drink even one Grande Starbucks a day, it will pay for itself in the first month!
mark sutin says:
The ads never really sway me one way or the other. I look at them with amusement, but at the end of the day it is the quality and pprice that will motivate me. Living in the North east we have a convenience store called WAWA. It is far and away the best coffee I have had (this coming form a three cup 20 + ounce a day drinker) The coffee is $1.39. It is less expensive and taste fresh.
By the way, they rarely have commercials. So, I am not really moved by the marketing genius of Starbucks or Dunkin Donuts…It’s all about the quality (and price)
Kathy Rothfusz says:
That first one sort of rubs me the wrong way. Don’t get me wrong, I do enjoy a good Starbucks on occasion, but to have the high cost of their product practically touted in an ad seems awfully presumptuous to me. I also like McDonald’s coffee (which I call the “poor man’s Starbucks”). And Dunkin’ Donuts’ coffee is quite tasty, too.
Now, if I had known they’d make it over when it didn’t measure up, I’d have done that on numerous occasions. I don’t always get a consistent product, so it sounds like they’re talkin’ the talk, but not always walkin’ the walk. Maybe that’s just my dumb luck and my Mom always said, “if can’t say something nice, don’t say anything at all” … so I’d just take it and not make a fuss. But at nearly $5 a pop, perhaps a little fuss is okay.
None of these ads bring me closer to the brand. On the contrary, it elevates Starbucks to the status of “coffee for the elite/rich/entitled,” and that’s not me. So perhaps I’m not worthy of Starbucks anymore?
Mark Crumbley says:
I’ve never been a huge fan of Starbucks and this advertising wouldn’t have any impact on me for that reason. It appears to be targeted more toward their loyal customers, to keep them from straying to competitors.
Even though I’m not a huge fan, I do go to Starbucks occasionally – some of their speciality drinks are good – but I wouldn’t increase my frequency based on this line of advertising.
Shannon Goyda says:
I agree that these ads seem to be targeted toward current Starbucks users. I’m a huge Starbucks fan and these ads reinforce what I already feel about the company. When I drink coffee, it’s almost always some type of espresso-based drink, and in my opinion, Starbuck’s can’t be beat for that type of product. I do buy coffee from McDonald’s more often, but only out of convience. Every time I go there, though, the whole experience reminds me that Mickey D’s is no substitute for the real thing–the quality’s just not there, not to mention the level of service. I think Starbucks gets an undeserved bad rap about being an “elitist” coffee shop. To me, these ads simply speak to the quality of the entire Starbucks experience.
Merrill Dubrow says:
Shannon,
That is a very interesting point. Starbucks gets an undeserved bad rap about being an elitist coffee shop. I wonder how many feel the same?
Appreciate the comments.
Merrill
Suzanne says:
To me, these ads represent what Starbucks is all about, but I wonder the power and relevance of their message to the widespread public during the economic times we’re in. I am a regular 2 cup a day coffee drinker. I think Dunkin Donuts tastes better, and it’s a benefit that it’s less expensive. I make it at home most of the time, but do venture out about 1x/week. Dunkin Donuts and Starbucks are located almost side-by-side where I go, and I haven’t gone to Starbucks even once in the past year. These ads do not sway me as the communication is not motivating to me, a loyal DD drinker.
Jessi Boyd says:
Starbucks new campaign seems to be ignoring that fact that they themselves started selling a cheaper coffee (the pikes place roast) in an attempt to compete witht their lower cost competitors. Now they’re too good for cheap coffee?
Deb Stoughton says:
I’m not a coffee drinker but the ads just don’t grab me. Doesn’t make me want to start drinking coffee either.
Rhonda Ellis says:
I have never been a fan of Starbuck’s so the ad doesn’t sway me at all. I tried their coffee once. Once was all it took. It just did not appeal to me in the 1st place. Secondly, the price would be prohibitive for me — just wouldn’t spend that much on a cup of coffee per day. I can make a whole pot of it at home for less each day and can add to/doctor it any way I wish, pour it in a go cup and be happy.
As far as the ads themselves, pretty amusing. I like the ads…they would just have no “transactional” effect on me.
janet says:
I actually like the ads, especially the look. Now I am a huge Starbuck’s fan and really don’t need to be sold so my opinion may not be worth much. I also should note that I own my own machine and rarely pay for Starbuck’s unless I am out of town. I do by the Starbuck’s beans for my machine. In fairness I have tried other brands and coffee houses and the only one I have found to be superior to Starbuck’s is in Evanston, IL. Brother K’s. The fact that Starbuck’s is now doing some advertising and has some specials going on in-store, tells me the cheaper competition in this economy is cutting into their profits. The message I am getting from the ads is you get what you pay for, and if you appreciate good coffee I think these ads work.
Kelly HL says:
I like the look, but the first one I find terribly off-putting. “Beware?” Really? The third one is kind of nice in that it speaks to the company having a passion for producing a high-quality product; the second and fourth are mildly irritating.
I usually make my coffee at home and only go to SBux either as a “treat” or when I’m traveling, so I can’t say that this type of advertising (general brand versus promoting a specific flavor, new drink, etc) would have any impact on me one way or the other.
Lovejoy says:
The ads do nothing for me. I don’t like Starschmucks, as Roger would put it. Even if the menu didn’t seem like reading a book written in a foreign language, the coffee just isn’t as good as Dunkin Donuts! I wish we had more of them down here, but I’m happy making my own DD coffee at home. …and, surprisingly enough, I like McDonald’s coffee way better as well. No reason to pay 5 bucks for a bad cup of coffee…no matter what the ads say!
Jeanie says:
Starbucks is a treat for me. My daily cup is out of the machine at work or sometimes a cup from 7-eleven. In my opinion Starbucks has the best coffee and my coffee craving is more than satisfied after my weekly splurge. I like the second ad the best and the first one is my least favorite. I don’t feel like any of them make me feel closer to the brand. I also feel like these ads come across that Starbucks thinks that their products are for ‘the better people.”
Kelly says:
I am not a coffee drinker, so I can’t comment too much. However, I think they are a bit presumptuous, as KR commented. I would not pay $5 for a cup very often but I’m cheap!
Bill Dunn says:
These ads really do not make me want to buy their product. I like Starbucks coffee OK, but I don’t go out of my way to get it, and these ads do not motivate me to do so.
I drink a good bit of coffee – more than is recommended by most doctors. Starbucks would be in my top 5 favorite takeout coffees, but if I had to pick one, I’d pick the Bold blend from Krispy Kreme.
Patricia says:
The ads don’t really sway me much. I am not a coffee connoiseur, I like my coffee flavored, with chocolate and orange for example, so it doesn’t really taste like coffee. Starbucks is the only place that I have found flavored coffee I like, but I am not willing to pay the price on a regular basis – it is more of a treat.
Eric Lindgren says:
I like Starbucks moreso than most other chains that offer coffee, such as Dunkin’ Donuts and McDonald’s. I find that most American places brew their coffee much too watery for my taste, and Starbucks (usually) gets much closer to the right kind of strength. I actually like home-brewed Dunkin’ Donuts beans more than home-brewed Starbucks, but that’s only if I make it myself.
That said, I prefer to use a french press and make my coffee at home, or brew my own in a coffee maker. And I use fair trade or local beans, or my favorite, a California company called Peets (best coffee ever). These are a bit more expensive, but I don’t mind paying a little more for good quality coffee (most of the coffee that exists for purchase in this country is quite low-quality in my opinion). If you make your coffee at home, even the best-quality beans will be cheaper than if you buy the lowest-quality brewed coffee every time you drink it.
If you like a good, non-watery brewed coffee at the price Starbucks charges, you’d bge better off finding a good local coffee place. The price will be comparable or even a bit less, and a good one will have better quality coffee and will brew it with a much better flavor.
As for how the ads affect my perception of Starbucks, I find them a little insulting and presumptuous. They’re also causing a bit of confusion as to the aim of Starbucks, considering that recently they were trying to appear lower-cost.
Pierre says:
I think McDonald’s is putting the serious smack-down on ol’ Starbucks right now — and the House of the green goddess is runnin’ scared. Prior to The Great Recession, Starbucks was the coffee house of choice. People were willing to pay foolishly large amounts of money for the cache of the marque. All of a sudden — and for the sake of argument we’ll call the timeframe Summer 2008 — everyone decided to get practical. McDonald’s was there with a good cup of coffee at a REASONABLE price. Suddenly the ol’ cache didn’t mean so much anymore and Starbucks has to fight a little for their market share. ANYWAY, does the ad campaign impress me? Nope. I never particularly care for ad campaigns where sweat on the brow is palpable and desperation hangs heavy in the air.
Louis Ygartua says:
The ads do nothing for me. The design is poor for one thing. On the way to work today though I realized they have really good site selection for people on the way to work. Like they used to say about banks, location matters. Their cachet does seem to be tattering a bit.
Betsy says:
I personally love the Starbucks advertisements despite being an avid consumer of soda to get my caffiene. They are excellent examples of brand building based on brand equity as a means to differentiate what used to be a commodity product. The fact that so many have such passionate feelings about this topic further supports the fact that the category has become high engagement.
Heather says:
I would like to know what “price” this cheaper cup of coffee comes with and what they have to back up the claim. i find it a bit offensive because I feel like scare tactics always try to play on a company’s assumption that people are not intelligent and won’t question anything. so I am very turned off by the ads as a whole.
the last one is my favorite (because I think they insult themselves). I think they are a company that compromises on quality…and that’s why I think their regular coffee leaves a bad aftertaste with me. I spent time in Costa Rica and of course, went to a coffee plantation. Before our tour we sampled many of the coffees which were wonderful. During the tour, the guide mentioned that they sell their beans to Starbucks–I, as well as others, were shocked because we find the coffee to have a burnt taste to it. It was revealed that they sell the beans to starbucks before the roasting process–so while DoKa naturally roasts the beans in the sun and rakes and turns them for a long, natural roasting process, what starbucks does in essence, is throw them in a giant microwave and fast roast them. So the next time you buy their costa rican blend and don’t like it–don’t blame the beans.
Jonathan says:
I thought, after reading the first ad, the campaign was going to differentiate Starbucks by touting good stewardship of the earth through the use of environmentally sound processes to bring a great cup of coffee to the customer. “Beware of a cheaper cup of coffee, it comes with a price”, that would be a great slogan for a “green” campaign and it would have caught my attention. Instead they are pushing a feature for which I already associate Starbucks, quality. The problem is that it will be difficult for them to justify their prices based solely on quality because the competition has closed the gap on that feature and managed to do so at a lower price.
Gwen says:
I am not a Starbucks customer and not even really a coffee drinker. With that said, I do like the overall look of the ads…I think the parchment paper background gives an old-school look to it and the bold wording is actually kind of fun. Definitely conveys their opinion that they are the still the leader in the coffee category.
Tom Hjelm says:
I’m not a coffee drinker, but I like the campaign. Given their price point, they NEED to be the best. And I think this campaign reinforces their quality image.
Alice says:
I like the ads and the new tagline. I am a Starbucks fan and based on my interactions with their employees and their products, these ads ring true for me. They do have superior products and their employees care that you are satisfied. There aren’t any Dunkin Donuts close, so I don’t have any experience with their products. I’ve yet to find a McDonald’s product or employee that measures up.
Merrill Dubrow says:
Alice,
Very, very interesting comment about the coffee and employees at McDonalds not measuring up to Starbucks. By you saying that you have pointed out an important differential that staff can and does make a difference.
Thanks for your comments.
Merrill
Bob T says:
I have only been to Starbucks a few times in the past and these ads will not make me visit more in the future.
But I do like the look and copy of the ads….just don’t think they will make price-sensitive folks start going and not sure how well they will work at retaining regular customers.
Susan H says:
I’m not a coffee drinker so the ads don’t have much impact on me. I do like the fact they don’t really apologize for their higher costs but recognize the need to make it right at their price points.
Merrill Dubrow says:
Susan,
That is a very good point. Thanks for sharing.
Merrill
Carla Penel says:
I think the ads cheapen the brand image. To me, Starbucks is a high quality, high cost treat. The look and feel of the ads, however, convey a lesser quality image. They make me think of something that a Steakhouse chain, for example, might use rather than a high-end coffee.
Amy Shields says:
I am an avid Starbuck’s junky and general coffee snob. I agree that these ads speak to me (as a current customer) and, as such; I love them! A regular cup of coffee (Grande tall) in the AM is only $1.91, and a grande is $2.11. These prices are for NYC and are not that much more than a bold cup of coffee costs at any coffee house. Other than Peets (which does have excellent products), I have never had coffee that is consistently as good as Starbucks. Since moving to the east coast, I notice how many Dunkin Donuts loyalists there are. I have tried all of the places Merrill mentions and honestly….will go without before I drink the coffee from any of them! So, while the ads don’t sway me, they certainly reinforce my personal choice of, “grande bold in a venti cup” (mornings), and, “iced double tall, 1.5 pump white mocha, .5 pump regular mocha, non-fat, with light whipped” (in the afternoon). Oh, and don’t knock it ’til you try it!
Amy Shields says:
Oops; meant $1.91 for tall and $2.11 for grande!
Lynn Stalone says:
I am in agreement with Amy 100%. It is one of the few places to get a great quad espresso. On top of the consistency of taste and quality issues, the staff at my two local Starbucks are fantastic, they know my by name, know my order and about once a month they comp my coffee – the service simply can’t compare anywhere else. The ads do appear targeted to the current customer. While they don’;t sway me, they certainly are not a turn-off, not a bad strategy in a down economy.
Meg says:
I too am a Starbucks fan and Kerig Coffee Maker fan. I did not care for the first ad. For me the first one set a tone of desperation. Starbucks now feels they need to fight back because of the cheaper competition and the ad focuses on price. When I buy Starbucks it is because I love their coffee. It is stronger coffee and I don’t think their is any other coffee that compares. I don’t buy it every day because of the price, but when I buy coffee outside the home it is Starbucks. And I don’t find their prices much more expensive than other specialty coffee shops. The second one is my favorite because it uses humor and a focuses on a quality feature unique to Starbucks. I think they missed the mark with these ads.
Bob Graham says:
I’m a coffee drinker, but I don’t go out of the way to drink Starbucks. I’ll drink it if it’s convenient,but won’t go out of my way to find it.
Like Meg and Pierre, I find a tone of desperation in the ads and also see them as a change of course for Starbucks. It used to be that Starbucks wasn’t just about the coffee, it was also about the experience; the friendly young baristas, the music, the lounge, the wifi access. It seems like they’re ready to abandon this and reinvent themselves on value.
tds says:
I like the ads, but I can understand why some see them as reinforcing the Starbucks elitist image. Personally, they wouldn’t influence my behavior in any way because I don’t drink coffee.
SPA says:
Their advt. should highlight how they are different from the rest based on their product and their service/employees and skip the price/cheap part in deference to the present economy.
Their present advt. is not supporting their shrinking market share and rather seems defiant in tone.
Dixie says:
The ads don’t do a thing for me. I live in a small northern-midwest town. We didn’t even get a Starbucks until a couple of years ago. Being a SOHO, I don’t make special trips for coffee but when I do go out for a premium cup of coffee my preference is Caribou and I know that if I didn’t like a coffee they would remake it for me. Given a choice between Startbucks and Caribou I will go out of my way to for Caribou. I never go to MickyD for coffee or anything else.
Seanjjordan says:
Seeing as the local coffee shop I used to go to just closed because, at least partially, of a Starbucks opening down the road, I’m not too happy with the brand right now. My local place roasted its beans on site, and sold amazing coffee. I can’t handle the burnt, overroasted taste of Starbucks or all that syrupy sugar they put in there. McDonald’s makes even worse coffee. The only positive thing I can say about it is that it’s still better than the stuff they served a few years ago.
As for the ad campaign, it’s dangerous to get into the realm of comparative advertising and negative messages. I suspect that Starbucks customers are not swayed by ads very easily, and I’ve been saying on AdAge and elsewhere that their strategy needs to be centered around delivering value, not delivering snob appeal. Their target market (the upper middle class and business travelers or commuters) is shrinking in the wake of a bad economy, and whereas McDonald’s and Dunkin’ Donuts have been able to respond with low price alternatives, Starbucks has become a “bubble brand” — a sign of the excessive lifestyles people lived before the economic crash.
Paul Kirch says:
Wow! Obviously a popular subject. First, let me say that I am a little bit of coffee snob, though have become less picky since leaving Seattle. Starbucks coffee has always had a roasted to the point of burnt taste, so it was something I would only drink in a latte or cappuccino or something like that. Their coffee today has improved. That being said, I personally think the ads are great. In our industry, companies struggle to differentiate. Relationship based selling still exists, but its harder to grow off of it. Without differentiation, many firms have to rely on lowest price. I personally think a lot can be learned from Starbucks. They haven’t dramatically lowered their price, I believe they’ve proven that they can differentiate and they tend to offer very good service. The point about elitist is hard for me to swallow, maybe because I lived in a city which had various locations that would thrive across the street from each other (two Starbucks, one on each side of the street) and the clientele was an ‘all walks of life’ crowd. I believe they cater to everyone, but some refuse to pay the price. I personally don’t spend much time at Starbucks, but it used to be my office on the road and is still a great spot for Wi-fi if I’m traveling or in need. Starbucks has been fairly consistent, and despite the closing of many stores, I believe they have a great approach. I’ll close with this:
I worked for a gentleman who sold recreation equipment at wholesale prices to the public. I thought he was pretty feared by his competitors until I met many of them at various trade show events. It turns out he was sometimes the butt of the joke. They laughed about how foolish he was to sell at the discounted prices. Many of the other firms were larger and much more profitable. I realized at that point that the low-margin game may help you grow, but doesn’t mean you’ll be successful. In our industry, there are firms that seem to sell so cheap that they must lose money on each sale. Don’t worry, they’ll make it up in volume.
Merrill Dubrow says:
INTERESTING NEWS
Starbucks experiments with new name, adding alcohol to its menu
By Bruce Horovitz, USA TODAY
Don’t expect grande wines or venti beers anytime soon at your local Starbucks. (SBUX)
But in a move to attract hard-to-find evening business, the struggling coffeehouse chain is about to test the addition of wine and beer to the menu at one of its Seattle stores, which it has even given a new name.
The store, opening next week, is called “15th Ave. Coffee and Tea inspired by Starbucks” — a reflection of the neighborhood in which it’s located.
Starbucks plans to create two more similar stores in the Seattle area at locations that aren’t currently Starbucks stores. And if the concept works, it could be tested in other cities, says Major Cohen, senior project manager at Starbucks.
For Starbucks, which has suffered a humbling mix of closed stores, employee layoffs and same-store sales declines during the recession, the move is an attempt to extend the brand into the evening, when business is typically at its slowest.
The first store, which will look very different from a typical Starbucks, will serve a half-dozen kinds of beers and wines — most with connections to the Northwest. A bottle of beer or a glass of wine will sell for $4 to $7, Cohen says.
Beer and wine will not be sold to go because of state law, he says.
“We’ll be equally as proud of our beer and wine as we are of our coffee,” Cohen says. He says he didn’t yet know if this concept would be incorporated into all Starbucks stores if it’s successful.
“If you stop innovating, you’re dead,” says Scott Bedbury, CEO of consulting firm Brandstream and former marketing chief at Starbucks. While Bedbury likes the move — which he says is common for European coffeehouses — it also could twist the chain’s hard-earned image, he warns. “The reason Starbucks became the number one place to go for a blind date is because women are comfortable there — and the men aren’t drunk.”
The test move to sell alcohol is clearly an attempt to fight off growing competition from McDonald’s and Dunkin’ Donuts, says Ron Paul, president of Technomic, a restaurant consulting firm. “But if I were sitting in Seattle, I’d go after the evening snack and dessert business, not alcoholic beverages.”
Aileen says:
I thought DunkinBucks would work better as a name …
Will Morris says:
I am pretty much a social and business coffee drinker and Starbuck’s provides the very best venue for an easy gathering with friend or client. I can always find one that is convenient and easy to get to. With a visit with a friend or client as the objective, then the price doesn’t make any difference. I’m not going to meet a client at McDonalds or QuickTrip. Just this morning a client said he would be in the Preston and Royal area and there was a Starbucks at the NW corner of that intersection – deal done.
The adds don’t really impact me one way or another but I take them as part of their mission statement, which I accept. Price just doesn’t matter to me. Without expressing a judgment, I find it kind of humorous when a person drives a luxury car or a big Hummer and stops drinking Starbucks to save money. I say, consider it part of the experience.
Malcolm Williamson says:
Very effective campaign. If you don’t want to pay for quality, get your coffee from Dunkin Donuts or 7-11. The great thing about America is that we have choices. You can buy your shoes at Payless, or you can buy from Nordstrom’s. Some wear Rolex and some have a Timex.
I think it’s great that Starbucks is blatantly letting their target know that if you want good coffee, don’t sell yourself short. Spend the extra two bucks and enjoy your coffee.
If you’re cheap, you can feel good about the splurge and if you’re not cheap, then you’re getting your usual good coffee.
Nothing wrong with a little Capitalism. It’s what makes us awesome, and I say ‘keep being awesome’!
Steve says:
These ads leave me cold. I have had several bad experiences with Starbucks with bitter coffee and an unpleasant aftertaste that left me wondering what all the fuss was about. So these ads just backfire on me, reminding me of reasons not to go there.
At this moment I just got back from lunch at a local Cuban restaurant and am sipping the most wonderful cafe leche made with Cafe Bustelo Cuban coffee. Wonderful!!!
Dan Prince says:
I am NOT a fan of Starbucks, as I don’t like the taste of the coffee or the kind of “atmosphere” I get when I go into their stores. I only go there when clients want to meet at one, rather than at their office or ours. Which, of course, implies that the brand still has a very loyal following. In the case of the ads, perhaps any ad is worth running, just like some people believe that any kind of PR is worth getting. it’s keeps their name out there, and provokes people. If you’re a splitter, as many of the bloggers seem to be, or just an intermitent user, then these ads will probably WORK!
Aileen says:
I’m a Starbucks drinker — albeit with no caffeine and no sugar … mainly I guess because of the convenience of their locations. If I’m leaving the gym I want a reward for the 1.5 hours of pounding I just willingly put myself through and Starbucks is 1 block out of my way. The Dunkin Donuts that’s open at night is 2-3 blocks. If I’m out running on the lake, another Starbucks is on my way home. I don’t think I pass another place —
If I were not a current customer, frankly I’d be turned off by the ads. They don’t say “quality” to me they say shi-shi. I think Starbucks has to let go of the idea of being the affordable luxury in this economy and look at, instead, being the one who always gets it right and as close to “from scratch” as possible — e.g. home-made is comforting in this economy – doesn’t Dunkin Donuts just press a button on the machine to give you a latte or mocha? I’m sure MickeyD’s does – everything is pre-measured/pre-made there. If those are the ones that are eating into their business then they need to look at what differentiates them from THEM, not what is shi-shi about Starbucks.
Mitch Hodus says:
Starbucks is simply over priced. I have had great cups of coffee at 7-eleven, Wawas, and Dunkin Donuts.
I personally enjoy Dunkin Donuts and their convenient drive thrus where I get my egg and cheese sandwich and my medium coffee with milk and a sweet and low. I’m impressed with the consistency of the coffee and the sandwich and I’m out of there for less then $5 for both.
Willie Martin says:
As a lifelong drinker of Starbucks since my days in Seattle, I am a fervent believer in competition breeding a great product. However, I am a little surprised that Starbucks views McDonalds or Dunkin Dounts as a threat.
Perhaps this makes me a coffee snob, or maybe ignorant. I’m that customer who is a creature of habit. Once I hang my hat, unless you piss me off with poor service, I will keep coming back. That’s me. That, and being on my way to work makes it easy and convenient.
As a lifelong worker in the service industry, I have always felt that it isn’t the product that sells, it;s the person, the face behind the product that makes something amenable, believable, doable, and edible!
Sure having a discount card helps. I do think people are creatures of habit. In the last 11 years I have had nothing but good experiences at all Starbucks locations in Seattle, Dallas, and Arlington.
Thanks Merrill!
Merrill Dubrow says:
August 24, 2009
Starbucks Raising ‘Complex Drink’ Prices
But lowering prices on smaller, more basic drinks
SEATTLE — Starting in several cities on Thursday, Starbucks customers began paying more for larger and more complex drinks and less for smaller and more basic drinks, reported The Wall Street Journal. In some markets, customers will pay a nickel more for a venti, or large-sized, cup of vanilla bean- or coffee-flavored frappuccino; 15 cents more for a venti mocha or vanilla latte; and 25 cents more for a venti caramel macchiato. An additional espresso shot or an extra dose of milk or syrup also will cost another 10 to 15 cents; however, a tall latte or cappuccino will cost a dime less, while a tall hot or iced brewed coffee will cost a nickel less in some markets.
Starbucks first disclosed in April that it would adjust prices, said the report, but it did not give specifics. In recent days, memos went to baristas nationwide advising them to “expect customers to be sensitive to pricing changes in this economic climate,” according to a memo reviewed by the Journal . The memo instructs baristas to tell customers that price increases reflect the increased cost of doing business and that price cuts are meant to show that the Seattle-based coffee giant is looking for ways to provide value.
Employees in San Francisco, Denver, Portland, Ore., and Raleigh, N.C., confirmed the increases in those cities, the report said. Starbucks spokesperson Valerie O’Neil declined to identify cities where the pricing changes first take effect, but confirmed for the newspaper that they will roll out nationwide over the next few months.
She said the increases reflect higher costs for labor and ingredients. “This is the first time we’ve ever lowered prices,” O’Neil said, adding that in some markets, even drinks that are increasing in price will remain below competitors’ prices.
Starbucks has been struggling lately to attract and retain cash-strapped customers amid the recession, said the report. But Starbucks reported better-than-expected earnings for the quarter of $151.5 million versus a loss of $6.7 million a year earlier.
Specific pricing changes will vary by market, based on a given area’s cost of goods and labor. “There may be pricing differences between stores of close proximity and between company-operated and licensed stores,” the memo said.
To soften the blow for customers unhappy with the price increases, Starbucks told baristas they can use change from a change cup at the register to make up the difference during the first four days following the price hike.