The $1 cup of coffee

A couple of weeks ago Starbucks announced that it will use a couple of Seattle stores as testing grounds for selling a cup of coffee for only $1 dollar. While the idea is both innovative and a bold marketing move by Starbucks, after visiting New York City it seems like a natural reaction to the increasing competition of companies in the East Coast. Through my observations I found that most customers have a $1 markup as their reservation price for a single cup of black coffee. I discuss this trend in more detail on my website.

Did you want a McMocha with that?

After coasting to a prime parking spot in her hand me down sedan, the only thing this teenager needs is a non fat extra foam vanilla latte with peppermint to complete her outfit. These teenagers have never seen the days when coffee used to be uncool and associated with truck drivers & salesmen. They see CEO's in chucks sipping lattes making lots of money. Seeing Starbucks as a status symbol this 18-24 year old segment, the most prominent, drinks about 3.1 cups per day.

The market for premium coffee belongs to Starbucks but according to this article in the Arizona Republic, maybe not for long. From McDonalds to 7-11, coffee retailers are lining up to make their debut in this coffee war. Dunkin Donuts had even offered a 99 cent mocha during the time period that Starbucks was closed for customer service training. Burger King is also attempting to tap the premium coffee market with the new BK Joe. 7-11 is now offering an alternative to the adorned Frappuccino, the Slurpuccino. The premium coffee market is large but spread out, meaning some consumers like it cold, quick, cheap, minty, etc.

Branding plays a huge role in this, I mean would you drink Clorox orange juice? Starbucks obviously has a huge advantage with its brand as most people think Starbucks when they think coffee. When it comes down to whose coffee tastes better though, surprise surprise, McDonald's comes out on top in this Consumer Report taste test!

Now can you hear yourself saying, "We got an hour guys, lets go hang out at McDonald's."? Maybe or maybe not. Even though the coffee at McDonald's tastes better, you'd probably end up at Starbucks to kill that hour. As we've seen in the past McDonald's has spilled its share of coffee, but will it be Starbucks that gets burned?

Starbucks Sizing

I’d really like to know why they don’t just have small, medium, large, extra large. That would make everyone’s life much easier. I personally don’t go to Starbucks because I hate all things coffee with a passion and am unwilling to pay their prices for anything else. But I still get amusement from hearing people talk about their Starbucks experience. But if I could get a 64oz hot chocolate for two to three bucks I'd be there every day.

Starbucks is slashing 600 jobs- about a third in Seattle.

Many of you may find this post on another blog about Starbucks' layoffs interesting.

Why I Stopped Being A Loyal Starbucks Customer.

I used to be a loyal Starbucks customer. Every morning, I trudged to my local store where my favorite team of baristas concocted a brew that I loved. Yet, I am sad to report that I have stopped this pattern. I am no longer a loyal Starbucks customer.

In order to understand my decision, you need to first accept the fact that Starbucks simply does not take good care of its customers who order drip coffee. These customers are typically heavy drinkers and predominantly male. They tend to drink a large cup of coffee in the morning to get a jump start. These customers have always been treated as second-class.

The evidence for this comes from many places.

First, the new drip coffee brewing machines take way too long to brew coffee. If the coffee you want is not available, you have to wait four and a half minutes- four minutes for it to brew and 30 seconds for an energetic barista to jettison the lukewarm coffee and load the new batch. This is NOT ACCEPTABLE.

Second, some of us have frequented Starbucks for its mild drip coffee. This has proven to be a fool's errand. The demand for mild drip coffee is low. As a result, baristas are likely to not want to brew it at regular intervals. In the location I frequented, it was most common for me to not have mild drip coffee available when I arrived. The baristas were nice and offered to make me a new batch which would take the aforementioned 4.5 minutes.

Third, on more than two occasions, I was served lukewarm drip coffee. If I am paying Starbucks money for drip coffee, I demand hot coffee. The lukewarm coffee is a joke. I had to draw the attention of the barista who brewed another batch for me in 4.5 minutes.

In addition to these reasons, Starbucks has surreptitiously increased the price of drip coffee. At this point, in the Seattle area, I believe a grande drip goes for $1.91. Only a few months back, this was $1.75.

I was recently in New York. What a place! In any case, I found this place there called Guy and Gallard that has unbelievable coffee. I wish they were in Seattle.

As for Starbucks, I think they have lost their commitment to the customer. I worry about their future.