I’m not an economist, but I have trouble understanding how in the midst of a life-changing economic climate, Starbucks decided to drop some prices (on basic pours) and increase prices on more elaborate drinks. This comes at a time when people are questioning how much they should pay for a cup of coffee. With competition among the brewers an on-going price war, why would they decide to raise prices now? (If you think you’ve escaped the increases or not received the reductions, stay tuned: Pricing varies by location and the new pricing rollout will eventually affect all the stores).
Yes, there are some signs we are moving, OK, crawling out of the demise, but every analyst has said we are not the same in our spending patterns as we were a year ago. If a year ago we had two Starbucks specialty drinks a day, we now are more likely leaning toward the basic drip. That’s funny, they are less costly and now they are the focus of reduced pricing. I feel like I need a quick course in psychology or logic to truly understand the process. They’re lowering prices on lattes and brewed coffees and raising them on Frappuccinos which as far as I can tell require little more than a push of a blender button.
The question to ask is who will buy the drinks? If there are more customers complaining about high costs, and they’re still Starbucks customers, will this strategy flip them over the edge? Of course, it’s hard to know, and it’s easy to second-guess. The concept just seems illogical.
When does a cup of coffee become just a cup of coffee? Starbucks created a coffee experience: A place, a destination with an expansive menu of almost unlimited combinations. We are different now. People seem to linger with their non-fancy brewed coffees.
Obviously, McDonald’s and its McCafe specialty drinks are proof that price matters and people are willing to forgo an experience in favor of affordability.
Get your coffee sleeves ready.
The last few years have seen the emergence of branding experts: Individuals who espouse the importance of gaining a market foothold by being a recognizable, trusted brand.
come.
OK, I’ve been pretty harsh with the revivalist techniques at
I’ve written about the reinventions, but everytime I think I am over it or the news is old, more comes in. They have been at war with McD’s and Dunkin’ and everyone else who owns a coffee cup. They were number one and have been beating back the grounds to get back on top.
Just a regular steak knife does not seem big enough to slash prices at many steak restaurants. 
xecution is a killer.
Hard to believe what I just read–the word “Sanka” is in the information.