Starbucks selling coffee for a buck

 
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Pajamahadeen
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PostPosted: Sun Jan 27, 2008 11:07 pm    Post subject: Starbucks selling coffee for a buck

Oddly enough, I have never had a drink of coffee in my life. I thought you coffee enjoyers might like this story and the opportunity to save some money.

Quote:
Starbucks -- for a buck
Some stores will offer free refills on drip coffee, too

By CRAIG HARRIS

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.

Seattle-based Starbucks Corp., in a battle with McDonald's Corp., Dunkin Brands Inc. and others selling low-cost coffee, said it is testing the $1 price for its "short," or 8-ounce, cups of coffee at an undisclosed number of stores.

However, some Seattle-area stores not involved in the test provided the discount and refills on request Wednesday as part of the company's "Just Say Yes" policy.

Stuart Brown, a Seattle attorney and daily Starbucks customer, said it was about time the company provided a reduction -- following recent price increases -- and said it was a good business move.

"Their coffee isn't what it used to be," said Brown, who orders various drinks. "They also could knock off the price of their lattes."

Starbucks, which this month fired its chief executive and brought Chairman Howard Schultz back to run the company, also will begin selling two new drinks -- honey lattes and honey Frappuccinos -- when it launches its "Best Espresso in the Neighborhood" campaign on Feb. 26, a spokeswoman confirmed Wednesday.

The world's largest coffee chain with 15,000 stores is undergoing a massive reorganization as it tries to rebound from a disappointing 2007, when the share price dropped 42 percent following a decline in business for the first time. The company, which in July raised prices for the second time in less than a year, has said it will slow its domestic expansion this year amid a sluggish economy.

A year ago, Schultz told high-level executives in an e-mail that the brand had been watered down. He told investors Jan. 7, when he returned as chief executive, that the company hasn't introduced enough "exciting" products. Schultz is to provide more details of the turnaround plan Jan. 30, during the first-quarter earnings release. In December, Starbucks for the first time began running national TV ads to increase business.

Starbucks shares jumped more than 7 percent Wednesday to close at $20.09 on the Nasdaq stock market.

James Walsh, an analyst with Bellevue-based Coldstream Capital Management, said the price reduction "sounds like a direct response to McDonald's and Dunkin Donuts," yet he questioned the wisdom of the move.

"It doesn't jive well with their strategy of slowing down store growth and focusing on the experience of customers," Walsh said. "Once you start making your customers cost-conscious it's ingrained in the brand. ... It's only drip coffee and in test areas, but it's a risky strategy."

Starbucks, which plays music in its stores and charges about $4 for specialty drinks, said in a statement that its test is "not indicative of any new business strategy" and "testing is a way of life for us."

"We are delivering something to our customers," said Valerie O'Neil, a Starbucks spokeswoman.

Previously, the company has tested breakfast sandwiches and Frappuccinos before expanding them on a broader scale. Some Seattle stores also are testing protein smoothies.

Starbucks declined to say how much a customer would save on the discounted 8-ounce drink because prices vary among stores. At a Starbucks at 1144 Elliott Ave. W., the savings was about 50 cents.

Prices at competitors also vary, but McDonald's sells a 12-ounce small drip coffee for a suggested retail price of $1.07, while Dunkin Donuts sells a 10-ounce small drip coffee for a suggested price of $1.39. All company-owned McDonald's stores in Western Washington offer free refills on all sizes of premium roast coffee, according to the company. Dunkin Donuts has no Washington stores.

"Obviously it's a good customer-relations move and it makes the customer happy," Paisley Madison, a McDonald's Northwest region spokeswoman, said of the free refills.

The price reduction at Starbucks, even for one item, was well received by Jackie Gehlen of Seattle, who said she visits Starbucks about twice a month.

"It sounds good to me because I think Starbucks is too expensive," Gehlen said."


It looks like the marketing monster that is McDonald's has put the fear of God in the hearts of Shultz and Co. McDonald's last year announced an expansion into the sacred ground of Seattle, Coffee/Cappuccino

http://www.cbsnews.com/stories/2008/01/08/earlyshow/main3686507.shtml

In other words, Starbucks knows that McDonald's is about to take a chomp out of their ass. Soccer mom takes the kids for a Happy Meal and while waiting in the drive through, orders herself a latte.

Nice!
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PostPosted: Sun Jan 27, 2008 11:12 pm    Post subject:

every day when i show up to work i have brewed Peet's coffee waiting for me. so i never buy it anymore. i do enjoy a latte from Starbucks now and the though.
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PostPosted: Mon Jan 28, 2008 5:18 am    Post subject:

$1 coffee from SBUX? It'll be the size of a shot...
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PostPosted: Mon Jan 28, 2008 6:41 am    Post subject:

Doesn't Starbucks make most of its money off those specialty drinks anyways?
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PostPosted: Mon Jan 28, 2008 7:42 am    Post subject:

Half the time when I have ordered coffee from Starbucks, the lazy employees haven't even managed to keep the grounds out of the coffee.

ummm, not so appetizing or good for the stomach to drink a giant cup of coffee grounds....Starbucks sucks.
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PostPosted: Mon Jan 28, 2008 8:04 am    Post subject:

LakerLanny wrote:
Half the time when I have ordered coffee from Starbucks, the lazy employees haven't even managed to keep the grounds out of the coffee.

ummm, not so appetizing or good for the stomach to drink a giant cup of coffee grounds....Starbucks sucks.


Wow, that sucks... I love Starbucks,... I really never had a bad experience, however if a certain barista (recent hire) at the Starbucks I frequent is making drinks, I simply get coffee... her drink making abilities are lacking...
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PostPosted: Mon Jan 28, 2008 8:54 am    Post subject:

LakerLanny wrote:
Half the time when I have ordered coffee from Starbucks, the lazy employees haven't even managed to keep the grounds out of the coffee.

ummm, not so appetizing or good for the stomach to drink a giant cup of coffee grounds....Starbucks sucks.


Agreed! Seattle's Best is way better.
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PostPosted: Mon Jan 28, 2008 12:39 pm    Post subject:

Haha thats interesting for me, being a Starbucks employee. We had a recent shift in power and things got kind of outta hand. McDonalds is really pushing their 2 for $3 McMuffins its kind of sad actually since McDonalds = Walmart of fast food.
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PostPosted: Mon Jan 28, 2008 1:22 pm    Post subject:

PushingtheLimit wrote:
Haha thats interesting for me, being a Starbucks employee. We had a recent shift in power and things got kind of outta hand. McDonalds is really pushing their 2 for $3 McMuffins its kind of sad actually since McDonalds = Walmart of fast food.



Wal-mart is another great company but McDonalds dominates their market like no other.
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PostPosted: Mon Jan 28, 2008 1:35 pm    Post subject:

Pajamahadeen wrote:
PushingtheLimit wrote:
Haha thats interesting for me, being a Starbucks employee. We had a recent shift in power and things got kind of outta hand. McDonalds is really pushing their 2 for $3 McMuffins its kind of sad actually since McDonalds = Walmart of fast food.



Wal-mart is another great company but McDonalds dominates their market like no other.


Wal-Mart, a great company... depends on who you ask...

SBUX > Seattle's Best... They serve both at my job and I had both a recent trip to Seattle (beautiful city/area)... SBUX 10 out of 10 times over Seattle's Best... IMO
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PostPosted: Tue Jan 29, 2008 12:22 am    Post subject:

You guys know that starbucks owns seattles best?

The beauty of starbucks is they sell lifestyle, which a certain number of people will buy, regardless of the economy. You just need to be aware of oversaturating.
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PostPosted: Tue Jan 29, 2008 12:33 am    Post subject:

24 wrote:
You guys know that starbucks owns seattles best?

The beauty of starbucks is they sell lifestyle, which a certain number of people will buy, regardless of the economy. You just need to be aware of oversaturating.


Sir, you are a genius! Death to the losers, POWER TO THE PEOPLE!!!
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PostPosted: Mon Feb 11, 2008 11:17 am    Post subject:

FYI... starting today McDonald's increased the price of their coffee... no more $0.69 for any size... it's still cheaper than Starbuck.

Also, Starbuck and AT&T will begin offering free internet access at 7000 Starbuck locations:

Quote:
US telecom giant AT&T and coffee shop titan Starbucks announced plans Monday to offer free wireless Internet service at more than 7,000 company-operated Starbucks locations in the United States.

Starbucks and AT&T will offer a mix of free and paid Wi-Fi offerings in what could be one of the largest free wireless projects in the nation.

In the coming months, Starbucks card holders will be able to access up to two hours of free Wi-Fi service per day at Starbucks locations, according to a statement from the two companies


Starbucks is trying to get those customers back...
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PostPosted: Sun Apr 06, 2008 8:57 pm    Post subject:

^^ I was in a Starbuck last week and the woman behind the counter said that the two hours free per day was going to start sometime this month (now only if I can find those cards I got at X-Mas)...
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PostPosted: Sun Apr 06, 2008 10:26 pm    Post subject:


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PostPosted: Mon Apr 07, 2008 5:09 am    Post subject:

Quote:
SBUX > Seattle's Best... They serve both at my job and I had both a recent trip to Seattle (beautiful city/area)... SBUX 10 out of 10 times over Seattle's Best... IMO


I never liked the "satelite" service of Starbucks, as in "we proudly brew Starbucks coffee here..." It never tastes the same as the store. Interesting enough though, I think Starbucks purchased Seattle's Best a few years ago. Same company, inferior product.

I think Starbucks is making a mistake by doing this though. They have already started hiring younger and younger workers, like McDonalds and it shows in the quality of service. It used to be that baristas were college-age "slackers" or musicians, artists and the like, that took more care in making coffee. Now the staff behind the counter are more concerned with the drive through, are slow to respond, don't know what half-&-half is and probably don't even drink coffee.

Instead of emulating McDonald's, i.e. opening up on every corner, hiring young workers, offering muffin-breakfast sandwiches and now apparently offering their product at value meal prices, why doesn't Starbucks just emulate themselve's from 10 years ago?
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PostPosted: Mon Apr 07, 2008 5:12 am    Post subject:

TACH wrote:
FYI... starting today McDonald's increased the price of their coffee... no more $0.69 for any size... it's still cheaper than Starbuck.

Also, Starbuck and AT&T will begin offering free internet access at 7000 Starbuck locations:

Quote:
US telecom giant AT&T and coffee shop titan Starbucks announced plans Monday to offer free wireless Internet service at more than 7,000 company-operated Starbucks locations in the United States.

Starbucks and AT&T will offer a mix of free and paid Wi-Fi offerings in what could be one of the largest free wireless projects in the nation.

In the coming months, Starbucks card holders will be able to access up to two hours of free Wi-Fi service per day at Starbucks locations, according to a statement from the two companies


Starbucks is trying to get those customers back...


About time. I could never afford to pay for the "Hot Spot" T-Mobile wifi they offered before. Panera Bread is good for free WiFi...
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PostPosted: Mon Apr 07, 2008 7:27 am    Post subject:

vanexelent wrote:
Quote:
SBUX > Seattle's Best... They serve both at my job and I had both a recent trip to Seattle (beautiful city/area)... SBUX 10 out of 10 times over Seattle's Best... IMO


I never liked the "satelite" service of Starbucks, as in "we proudly brew Starbucks coffee here..." It never tastes the same as the store. Interesting enough though, I think Starbucks purchased Seattle's Best a few years ago. Same company, inferior product.

I think Starbucks is making a mistake by doing this though. They have already started hiring younger and younger workers, like McDonalds and it shows in the quality of service. It used to be that baristas were college-age "slackers" or musicians, artists and the like, that took more care in making coffee. Now the staff behind the counter are more concerned with the drive through, are slow to respond, don't know what half-&-half is and probably don't even drink coffee.

Instead of emulating McDonald's, i.e. opening up on every corner, hiring young workers, offering muffin-breakfast sandwiches and now apparently offering their product at value meal prices, why doesn't Starbucks just emulate themselve's from 10 years ago?


The Starbuck I have the job is a full service (or close to it), you can get all the drinks they make in the actual store.

I agree with you about the age of the employees and service, I've notice that too...
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PostPosted: Mon Apr 07, 2008 8:08 am    Post subject:

I especially don't like the ones they are opening up in grocery stores. The employees work for the stores, not Starbucks, and it shows. Plus, I had to argue with the store manager about why I can't tip the barista!
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PostPosted: Mon Apr 07, 2008 8:13 am    Post subject:

24 wrote:
I especially don't like the ones they are opening up in grocery stores. The employees work for the stores, not Starbucks, and it shows. Plus, I had to argue with the store manager about why I can't tip the barista!


I never tip the barista, even in a normal Starbucks. They don't deserve it. There are too many counter tip cups in this world. Why do I have to pay more for a service provided by the company? I just want their product, not their service. I'd pour it myself if they let me.
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PostPosted: Mon Apr 07, 2008 8:19 am    Post subject:

vanexelent wrote:
24 wrote:
I especially don't like the ones they are opening up in grocery stores. The employees work for the stores, not Starbucks, and it shows. Plus, I had to argue with the store manager about why I can't tip the barista!


I never tip the barista, even in a normal Starbucks. They don't deserve it. There are too many counter tip cups in this world. Why do I have to pay more for a service provided by the company? I just want their product, not their service. I'd pour it myself if they let me.


You don't have to, just part of the experience for me. Of course, I tip the McD's kids too sometimes, you should see the confusion on their faces!
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PostPosted: Mon Apr 07, 2008 9:04 am    Post subject:

24 wrote:
vanexelent wrote:
24 wrote:
I especially don't like the ones they are opening up in grocery stores. The employees work for the stores, not Starbucks, and it shows. Plus, I had to argue with the store manager about why I can't tip the barista!


I never tip the barista, even in a normal Starbucks. They don't deserve it. There are too many counter tip cups in this world. Why do I have to pay more for a service provided by the company? I just want their product, not their service. I'd pour it myself if they let me.


You don't have to, just part of the experience for me. Of course, I tip the McD's kids too sometimes, you should see the confusion on their faces!
Yea, there isn't a picture of a tip cup on the register, it just leaves them confused....
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lakers2626
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PostPosted: Tue Apr 08, 2008 1:37 am    Post subject:

Starbucks is just to expensive. I find out if I don't go there in a pay period, I have a lot of extra cash to blow somewhere else.
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PostPosted: Tue Apr 08, 2008 5:48 am    Post subject:

Their coffee is expensive. Nice for them to realized that and try to address it.
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