Starbucks plans Value Meals to Compete in Tough Economic times

by Amy Judd | February 3, 2009 at 05:02 pm
2803 views | 28 Recommendations | 16 comments

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the New McDonald's Iced Coffee

the New McDonald's Iced Coffee

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Starbucks is trying to compete in the tough economic times in the States right now, by creating value meals to see in their coffee shops.

As McDonalds has branched out into coffee, now Starbucks has branched out into the previously unexplored value meal territory.

"You've got a lot of options right now for the more price-conscious consumer to save money," said Andrew Hetzel, the founder of coffee consulting group Cafemakers.

Starbucks has yet to offer many details about what Chief Executive Howard Schultz described to investors last week as "several breakfast pairings" at "attractive" prices. More details are expected as early as later this week.


Analysts wonder if it will be enough, as some coffee drinker have already gone over to McDonalds and it doesn't look like they are coming back.

Sales at Starbucks are suffering recently, due to the tough economic times, and it is just too expensive to go to Starbucks everyday now.

No word yet though on what the Value Meals could be.

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1
Karenke4

Bring a brown bag and support your local coffee houses. It wouldn't be the end of the world if we lose a few McDonalds and Starbucks in this mess, but it will be a shame when everything local shuts down.

0
Uwe Paschen

I wonder if that will trickle down to Asia STARBUCKS as well?

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Cameron Switzer

As crazy as it may sound, the gourmet coffee from McDonald's Japan is far better in taste than the overroasted bitterness of the Starbucks right across the parking lot. And with free refills that go with the original 100 yen cost (about a dollar), why WOULD people want to go to Starbucks anymore? Also, the food items at Starbucks are nearly completely carbohydrates, and WAAAAY overpriced for what you get, so again, grabbing a couple cheeseburgers for a couple dollars, throwing away the buns, enjoying a high protein snack that will keep your moods stable, your health much better than the high carb offerings at Starbucks (you can't throw away the bread in their sandwiches) and several cups of decent black coffee that doesn't leave you wishing you could wash your mouth out with lye (and I drink triple espressos regularly so I'm not a newbie to coffee, either - I know what real coffee is all about).. McDs is definitely giving Starbucks a run for their money.

The only thing I don't like is the McD atmosphere when I want a relaxed, enjoyable time. But when I need to wolf down some protein, it's because I'm on the move and can't afford that slow, relaxed, "jazzy" atmosphere of Starbucks.

I still go to Starbucks, but mostly just to "feel the people". And as economics continue to get tighter all around the world, if Starbucks doesn't think about the middle class economical-minded masses, they will be cutting out a HUGE market segment as we "poor middle class" continue to expand, and look for deals to save pennies.

0
jr

Cameron Switzer,

I agree with you that McDonald's coffee is much better than Starbucks.  It's beaten Starbucks in taste tests.  The McDonald's I stop at often is close to a Starbucks but I don't like the bitterness of Starbucks coffee.  I have never had a Starbucks coffee that I liked.  

One time a friend offered to buy me a coffee at Canada Place and there was a Starbucks and and a McD's almost side by side.  The whole time I was drinking the bitter Starbucks, I was thinking I would have been happier with a McDonald's coffee.  I had asked for a mild cup at Starbucks but it wasn't mild and it wasn't as hot as McD's.  

I like the atmosphere at Starbucks better, but some McD's are trying now to create more of a Starbucks atmosphere.  The McD's on Thurlow in Vancouver now has a couple of stuffed leather chairs and a phony fireplace. 

0
josh.webb

Starbucks is pricey and McDonalds coffee is getting better. I could afford McD's everyday but not Starbucks, even if they bring in "value menus."

josh.webb has contributed a photo to this story.

0
ercanmetin

I had this delicious chocolate soufflé coffee at McCafé Times Square Hong Kong.
I'am originally from Istanbul Turkey, and in Turkey we are not used to have our drinks in a paper cup. In fact nobody will come to your coffee shop if you don't have nice porcelain cups...
I think it is pity that in the USA people pay that much money at starbucks and get crappy treatment and a coffee that never tastes good.
I have been almost all around the world, I feel sad saying this but I have never ever seen any worse service in a coffee shop than the United States. Starbucks China should educate the USA crew. Because I felt like a King in Starbucks China.
As far as the McCafé goes, I loved the drinks but not so much for the desserts.

ercanmetin has contributed a photo to this story.

0
lauralynn

an easy homemade breakfast i ate one morning.

first i popped an english muffin in the toaster oven and let it warm.
then i scrambled 2 eggs in a non-stick skillet, added slicked cheese to the top while the eggs cooked for a few more minutes.
lastly, butter your english muffin and slide your eggs in between.
don't forget the coffee! easy and CHEAP!!

lauralynn has contributed a photo to this story.

0
Mary Richard

I was reading an article yesterday about how McDonald's last quarter sales were up 5%, while Starbucks was down 10%, - they're saying "Value is Relative," their value meals only comprise 13% of their sales, but it gets people in the door.

1
Iffy

This has to be Naomi Klein's greatest monument: the destruction  of the relaxed and intelligent atmosphere of Starbucks, to be replaced by the go-go high-churn atmosphere of McDonalds. Wow! Eight years of bitching out globalisation and she has us back to high unemployment and proliferating McDonalds. What a progressive is she! That truly is a 'shocking doctrine'.

0
mtammas

Could an editor please check a stream of unrelated and inappropriate comments coming from a 'not verified' identity in this story's comments stream?

Seems this has shown up in others stories, too.

0
mtammas

I like the atmosphere of a neighbourhood coffee shop that's not part of any multinational franchise/chain. Whether it's McDonalds or Starbucks, both have prospered under globalization and both have contributed to the demise of the independent owner operations. McDonalds is laying off workers even though it's posting increases.

0
robbie-69

 

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Roberto Alvarez-Galloso

I like the idea and the article is great.

1
Barry ORegan

And will Starbucks also follow the MacDonalds Trend of putting in Play Jungle Gyms for their Clients Kids, as a ploy to get customers in.  What about Toys with every Mc Starbucks Happy Latte.  It seems Starbucks may be following a trend when all these non sensical whimsical accouterments take a back seat to their original concept of just plain  Coffee!

But then I drink TiMAYS!!!!!!!

0
Joey C

I don't know about the rest of you. Every local starbucks here in Olympia and Lacey Washington get a continued stream of customers, and frequently sell out of sandwiches. Starbucks is doing just fine.

It's the smaller, locally owned fair trade coffee shops I concern for.

0
usd6

Not included caffeine a cup of Starbucks has been my favorite
Hopefully it will as soon as possible out of the woods
Thanks!

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