Starbucks has finally joined the masses and introduced a so-called "value-meal". For $3.95, customers can get a breakfast item, either a sandwhich or oatmeal, and a latte. Sound like a revolutionary idea? It does theoretically, but the problem is, the same loyal Starbucks customers will be enjoying these deals, but that's not what Starbucks is aiming at. Starbucks used this new deal to bring back in the unfaithful Starbucks customers who have now turned to McDonald's, and to customers who have never gone to Starbucks because of the prices.
The problem is this new deal is not doing that, 3.95 is still a good half-dollar more than a McDonalds combo meal which includes a sausage or egg Mcmuffin, a hashbrown, and coffee. Plus the fact that it's probably faster. In these hard times, there's a good chance customers will turn to this option.
Some Starbucks customers are very concerned that the company is spinning out of control and is starting to look more like old navy when it should look like Lacoste. This is true. Not only are they lowering their standards by introducing this new value product, but they are changing who they are. This is what people love about Starbucks, the class and the high-scale products. This new value meal almost seems to cheapen it.
The good news is that Starbucks stock has gone up 8 cents since the new deal. This could be a temporary high that could be followed by a bigger drop than before for the reasons listed above. I like the new deal personally, and I can see myself getting sucked into getting it. Also, oatmeal is bery nutritious and in a society where people are constantly looking for healthy options, this is a great draw to the new deal.
For now, it looks like things are going up for Starbucks so let's hope it stays this way for a long time. The good news is, despite the new value meal, the infamous Starbucks coffee still exists, and isn't that was initially drew people to the world famous coffee shop. Ultimately the coffee will draw people despite any other sales pitch the corporation may try to offer to work against the current recession.
It is probably a good move on Starbucks part considering people have been, and still are, looking for everything at a more decent value because of this tough economic crisis. Tons of food industries, particularly fast food industries, are increasingly adding value deals to their menus. I know that KFC, Sonic, and Taco Mayo have recently began trying to draw in more customers with value deals considering McDonald’s has had a wonderful time rolling in the large amounts of cash they’ve been racking up from their notorious dollar menu. Value meals are a great way to attract a number of people who want something more affordable, especially people who do not have time (or want to) cook for themselves, or college students that want to make a quick, cheap, and easy purchase for something of decent quality. Starbucks already has great pastry-type dishes and amazing coffee that attracts tons of people, but this should really help them stick around for a while.
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