Starbucks thinks you should spend more on your cuppa. In Seattle they are testing a 12 oz up of "fresh-pressed" coffee at $2.50 each and calling it a premium product.
"The new Starbucks drink, made in a machine that brews each cup individually, may become part of Chief Executive Howard Schultz's plan to increase traffic in the more than 15,000 stores of the world's largest coffee chain," Seattlepi said.
Since their regular brew is $2.25, that seems to qualify. When is the last time you paid $1.55 for anything at Starbucks? McDonald's and Dunkin' Donuts are cutting into their market share and this is SBUX reaction.
Starbucks Gets Pricier, Fancier
Brewed to Order Premium Blend
Trend Themes
1. Premium Coffee Trend - Starbucks is testing a premium brewed to order coffee to increase foot traffic and customer spend.
2. Customization Trend - Individual brewing machine allows Starbucks to cater customers' taste profiles.
3. Luxury Coffee Trend - Starbucks is charging $2.50 for 12 oz of fresh-pressed coffee, signalling a potential shift towards luxury coffee.
Industry Implications
1. Coffee Industry - Starbucks' premium coffee offering is positioning the coffee giant to tap into the luxury coffee segment.
2. Fast Food Industry - As competition increases from McDonald's and Dunkin' Donuts, Starbucks' shift towards luxury coffee is an opportunity to differentiate itself from fast food chains.
3. Retail Industry - Starbucks' potential plan to increase traffic and higher customer spend could impact in-store retail sales and collaborations.