Wednesday, January 23, 2008

Starbucks vs. McDonald's: Market Discipline

LOS ANGELES (Reuters) - Starbucks Corp is testing $1 coffee and free refills in its Seattle outlets as the global gourmet coffee chain grapples with slower consumer spending and rising competition from fast-food rivals.

Starbucks is experimenting with a smaller, "short" $1 cup as well as free refills for brewed coffee. Starbucks charges around $1.50 to $4.00 for a coffee, depending on size and flavor. Regular coffee prices at both McDonald's and Dunkin' Donuts start in the low $1 range.

Shares in Starbucks have lost around half their value over the past year (see chart above) amid worries about U.S. consumer spending (Hey, why is McDonald's stock up then?), over-expansion and competition from fast-food rivals such as McDonald's Corp that offer specialty coffees.

1 Comments:

At 7/05/2008 6:36 AM, Blogger Mary Popins said...

McDonalds is my favorite fast food restaurant. Everything tastes so delicious. However, they claim it to be unhealthy. Almost all the fast food restaurants serve unhealthy food. On the www.pissedconsumer.com I found out very much information about the company. Besides, the customers’ reviews are of a great use. However, your blog is also very informative, try to browse www.pissedconsumer.com. There you may also share your opinion.

 

Post a Comment

Links to this post:

Create a Link

<< Home