Starbucks is hoping to broaden its premium image with a new value meal -- a cup of coffee and breakfast food for $3.95.
Starbucks, which built a coffee empire on its premium image, now wants to convince customers that its drinks aren’t that expensive.
It recently announced that it’s selling discounted pairings of coffee and breakfast food for $3.95, a type of promotion long used at fast-food chains. It’s the first move in an aggressive campaign to counter the widespread perception that Starbucks is the home of the $4 cup of coffee.
The Seattle-based company is training its baristas to tell customers that the average price of a Starbucks beverage is less than $3, and that 90 percent of Starbucks’ drinks cost under $4.
The move shows how premium brands are trying to reposition themselves for a long economic downturn.
“I strongly believe we are going to be in this environment for years,” Howard Schultz, chief executive of Starbucks, told The Wall Street Journal. “It is a reset of both economic and social behavior.”
Much of Starbucks’ customer base still includes a die-hard core that may be unwilling to trade down.
Melanie Helfrich, a 29-year-old Louisvillian who favors Starbucks lattes, was unimpressed by a free sample of a hot mocha latte at a McDonald’s recently.
“I am willing to pay the extra $2 and wait for my drink in order to get a good cup of coffee,” she said.
On Feb. 17, Starbucks began selling its new instant coffee online, ahead of an nationwide launch this fall.
