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Starbucks Testing $1 Coffee, Free Refills

Reuters
Posted: 2008-01-23 10:08:12
NEW YORK -- (Jan. 23) - Starbucks Corp. is testing $1 coffees and free refills, The Wall Street Journal reported on Wednesday, as the global coffee chain faces increasing competition from fast-food rivals.

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Starbucks is launching three new drinks this summer, including a smoothie-like beverage made of fresh fruit and an icy Italian coffee-based beverage and an energy drink, as the company eyes healthier drink and food products.
From BloggingStocks: New Drinks Won't Save Starbucks


The report said Starbucks is experimenting with a "short" $1 cup as well as free refills for brewed coffee in its Seattle-area stores. Starbucks charges around $1.50 to $4.00 for a coffee, depending on size and flavor.

Starbucks was not immediately available for comment, but the report quoted the company's spokeswoman.

Shares in Starbucks have lost around half their value over the past year amid worries about U.S. consumer spending, over-expansion, and competition from fast-food rivals such as McDonald's Corp who offer specialty coffees.

The report said that $1 undercut regular coffee prices at both McDonald's and Dunkin' Donuts, a unit of Dunkin' Brands Inc., which start in the low $1 range.

Starbucks announced a management reshuffle earlier this year, bringing Howard Schultz back into the chief executive position. It also said it would close underperforming U.S. outlets and speed up international growth.

Starbucks has around 15,000 stores around the world including over 10,000 in the United States.

Reporting by Ritsuko Ando; editing by Louise Ireland.

Copyright 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.
2008-01-23 09:54:19
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Recent Comments

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686 comments

Mcgonigle51 06:18:56 PM Jan 24 2008

Huckabee the minister, Cheney the minister, the last thing we need is more ministers.
keep religion out of politics

PipeFitter 0127 04:59:08 PM Jan 24 2008

I have never spent a dime at Starbucks...I get my caffiene from Diet Coke! Much cheaper!!

Sward55 02:00:00 PM Jan 24 2008

I never order the coffee just tazo tea. the coffee is way overpriced and I think people spend way to much money on convience (or lazy ness) pay for your children to have health insurance on what you spend a day on coffee. Plus most people don't know this but Star Buck would not even support our troops in the desert. Would not even send coffee to our troops. Tim Horton did and they are Canadian based.

Boards0000000 01:11:41 PM Jan 24 2008

Maximized price for maximized bitterness, who would want to acquire that taste? Why not just sell people a $10.00 bag of dog poop.

WANT2WANDER2 10:05:58 AM Jan 24 2008

I HAVE NOT GONE TO THEM IN 2 YEARS (FREE STANDING LOCATION) WILL ONLY BUY IF IT IS ONLY COFFEE PLACE AVAILIABLE. THEY ARE SCREWING PEOPLE ON THE PRICE OF ALL COFFEE! How many cups can you get out of pound, x what they sell it for! No wonder they have opened more stores?

The customer slowing down going to their stores is natural, THE PRICE EXCEEDS THE VALUE= LESS SALES! All the other mixed coffees they offe!are way out of line too!
They are attempting a "low price" and hoping you will step up and buy the flavored and mixed items still at their inflated price! DO NOT BUY ANY THING
EXCEPT THE $1.00 PRICE AND SOON THE OTHER PRICES WILL COME DOWN.
GET SUCKED IN ON THE 1.00 THEN THEY PLOY WILL HAVE WORKED! AS ALWAYS "BUYER BEWARE"!

Mittimax 09:01:31 AM Jan 24 2008

They have lost track of the store condition and the employee attention to detail i have seen many times pouring new coffee into old coffee thus creating a bad coffee taste.You have lost the basic detail to business.POTD PLAN ORGANIZE TRAIN TRAIN AND DIRECT.

Biclassfem 06:09:46 AM Jan 24 2008

The coffee taste like it could grow hair.Please the snub crowd no tmy cup of tea ?:)

I sell coffee Starbuck is Five bucks great cup of fresh coffee but to hard a taste for me .I expect that in Expresso For a dollar I will return

Ladybugsnibble 05:52:00 AM Jan 24 2008

Starbucks is not my cup of coffee way to bitter and tastes burnt...i wouldnt drink it if they gave it away..

Poloponytony 12:22:47 AM Jan 24 2008

As a former Bux partner I will admit that their coffee is an acquired taste and upon first taste can seem bitter. However, it is the quality of beans (Arabica) used and the propotions that give the strong flavor; 2 tablespoons coffee to every 6oz. of water is the standard at Starbucks. If your used to drinking folgers, maxwell house, etc.(Robusto beans) then yes it Starbucks will taste bitter next to that garbage. I'm not a Starbucks groupie by any means but you should expect to pay a quality price for a quality product. Also another standard at Starbucks is that after an hour the coffee gets dumped and re-brewed to gurantee freshness; so I say bring on the free re-fills instead of wasting it! I also hate when people say it costs $4.00 for a cup of coffee; the $4 is for a latte not just plain drip coffee which costs $2 or under!

MESSICKBK 11:22:07 PM Jan 23 2008

Skip the burnt bitter coffee drink and buy the stock instead; you won't receive instant gratification but the rewards are much better than the Starbucks experience itself.

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686 comments

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