Coffee wars: Starbucks comes down and McDonald’s comes up

    Coffee is proving to be a very recession-prone industry. Just ask the folks at Starbucks that announced lower prices recently, reports YumSugar.

    Starting Tuesday, May 5 the chain is rolling out a new menu that will include discounted coffees (a grande iced coffee will now cost 45 cents less) and also so-called "value pairings," which sound like fancy value meals. The pairings will include breakfast sandwiches and coffee for about $4. They will also be offering foods for folks with wheat allergies or celiac disease. We heard about a Gluten Free Valencia Orange Cake with Almonds from the company’s twitter blog. Sounds yummy!

    More complicated drinks will now come with an even heftier price tag, perhaps to pay for the million dollar "multi channel brand campaign" that will launch soon. The hope is that the ads, which highlight the company’s value to consumers, will boost the store’s profile and make people realize why they were shelling out five bucks for Joe in the first place.

    This news is also parallel to McDonald’s plans to expand their McCafe. The company has been quietly seeding its coffee and fancier drinks through a website, Unsnobby Coffee, and with McCafe flyers in the front of its existing stores. Their premise, unsurprisingly, is to be the anti-Starbucks. The Wall Street Journal reports that they recently put a billboard in Starbucks’ hometown of Seattle that read, "Four bucks is dumb." Mickey D’s coffee is just around $3.


    — Whitney Teal


    Here’s more:
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    5 steps to a greener morning
    Christina Milian, The Dream and more caught grubbing

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