photo by margotta
Somebody has been praying…
SEATTLE — Faced with growing competition from cheaper rivals, Starbucks Corp. is selling small cups of drip coffee for $1 with free refills as part of a test in its hometown.
That’s about 50 cents less than the Seattle-based coffee retailer normally charges for an 8 oz. cup of joe, though prices vary from store to store.
The suggested retail price for a slightly larger 10 oz. cup of premium roast at competitors like McDonald’s and Dunkin’ Donuts is $1.07 and $1.39, respectively, the companies said Wednesday.
Starbucks said in statement e-mailed Wednesday by spokeswoman Bridget Baker that the test “is not indicative of any new business strategy.”
Starbucks would not say when the test began, how many stores are part of it, whether it’s considering a similar promotion for any other brews or whether any new test markets are on the horizon.
“Testing is a way of life for us, as we are constantly looking for new ways to connect with the customer and provide the best Starbucks experience,” the statement said.
Starbucks shares rose $1.42, or 7.6 percent, to close at $20.09 on Wednesday. The stock has traded between $17.66 and $35.67 over the past year.
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