Starbucks Tests $1 Cup Of Coffee, Free Refills

Starbucks Corp., the company that popularized the $4 cup of coffee, is testing a $1 cup and free refills of some of its offerings.

The Seattle coffee giant is experimenting with selling the $1 "short" brew in the Seattle area, spokeswoman Valerie O'Neil confirmed.

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.

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. Starbucks will face increasing competition this year from McDonald's, which plans to start adding a line of espresso drinks at its U.S. restaurants.

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Comments

[BobSF94117]

04:24 PM on 01/24/2008

If they give free refills, I'll never get a table!

[littlelamb]

01:02 PM on 01/24/2008

I've gone to the mom & pops in my area (which popped up like mushrooms after Starbucks opened). I've tried the mom & pops and if I'm gonna fork over $3-4 for a latte, the barista had better make a good one. It's been a rare occasion that mom OR pop made a better latte than Starbucks - it's not just the quality of the ingredients, it's the training. I'll go to Starbucks anytime a cup o' joe - at least I know exactly what I'm getting. And it ain't been sitting around for hours either.

I submit that there are MORE mom & pops riding Starbucks coattails since Starbucks' success in the last decade. I'm also mystified why people love to hate Starbucks but will frequent McD's, BK, etc. daily, weekly. Adds up, folks, in terms of finances and health.

And what about those who will pay $6-8 for a glass of cheap wine or a cocktail in a restaurant or bar? How is that different than buying an expensive coffee drink?

[Sundialsvc4]

09:37 AM on 01/24/2008

This is an immensely foolish strategy for Starbuck's.

The executives who are recommending it should be fired at once.

A coffee shop has never been about "the coffee." A coffee shop is "a place."

[driven989]

01:12 AM on 01/24/2008

Used to live in Spain and it was a nice and simple "cafe con leche" that everyone drank...way better than Starbucks!

[paixa3]

03:44 PM on 01/23/2008

SB's has been a rip off for coffee just like the local 7-11....yuks.....

[sheila]

01:14 PM on 01/23/2008

stop dropping the price, and start improving the VALUE. only brew ORGANIC, FREE TRADE, UNBURNED coffees with ORGANIC milk and treat employees well.

it's not that hard to figure out how to turn a 4 cent product into a profit, and since people are more socially conscious than ever, why not lead the charge, instead of heading the other way?

[PlanetKansas]

01:00 PM on 01/23/2008

I avoid Starbucks because of the jerks in front of me that order 5 minute drinks. What is the point of drinking a fine coffee if you have to turn it into a milkshake?

Gimme a medium coffee, strong, caffinated, no perfume, black.

[PlanetKansas]

12:54 PM on 01/23/2008

My girlfriend dropped her coffee bean habit when I introduced her to Folgers Columbian. Skip all the other roasts, and check your ego at the door, it makes a great cup of home brew.

[WorkingClass]

12:47 PM on 01/23/2008

I'm a really old guy. I remember sitting at a Woolworth's counter drinking a bottomless cup for ten cents. Todays dollar is worth about a dime so I guess we are back to the future. However, I don't think the Starbucks regulars are going to want to rub elbows with the riffraff.

[mellene]

12:04 PM on 01/23/2008

I'd say that's better than throwing out the old pot which may not be selling as fast. I'm so old I remember when you could get a cup of coffee for a nickel than a dime!

[Hart]

11:33 AM on 01/23/2008

Oh geez ... another Starbucks article where in-the-know hipster-minded suburban slaves or toe-the-line baby boomer hold-backs can profess how awful the coffee is, how overpriced it is, how the customers are such dumbeaus. Oh, we all rue the green, burnt, paper endoctrination to American mediocrity that is distilled into our infant capitalist souls by the *$ juggernaut. And the beat goes on.

[Irons]

11:31 AM on 01/23/2008

Selling for a buck won't make their coffee any less bitter or less acid-producing in the stomach.

[MA]

10:37 AM on 01/23/2008

Now $1 coffee, next:"Want fries with that?"

[OhgReaTone]

10:14 AM on 01/23/2008

How can one trust a big company in American to meet the needs of customers when their interest is not the customer, it just about profit.
Ohg
http://thefiresidepost.com/2008/01/12/coffee-and-the-american-gourmet-experience/

[warnerj5000]

09:21 AM on 01/23/2008

Brewed coffee at Starbucks is about the same price as McDonalds, Dunkin Donuts, or any other coffee place.

Is $4 for a latte overpriced? Probably, but at least compare apples-to-apples. Calling it a "$4 cup of coffee" is either ignorant or deliberately misleading.