Despite the high prices on the menu, Starbucks has begun offering deals and promotions to entice customers back to their stores amid inflation and rising costs. A grande Caramel Frappuccino is listed at around $5.65 and a grande brewed coffee is about $3.65, but customers are now receiving their drinks for half the price due to these promotions. The coffee chain, known for its high prices and long lines, has seen a decline in customer visits as people opt to make their coffee at home instead. Starbucks has started running promotions such as their yearly “Happy Hour” deal, where drinks are offered at 50% off for a limited time.
Morgan, a 50-year-old consultant from New Jersey, has cut back on his Starbucks purchases to once every couple of weeks due to the high prices and slow service. In response to the decline in customers, Starbucks has begun offering coffee and breakfast food bundles starting at $5, similar to McDonald’s popular $5 Meal Deal. The company is hoping to bring back customers who have switched to making coffee at home due to rising costs of food and groceries. Since the promotions started, loyal customers like Fumo, a 31-year-old account director from Philadelphia, have noticed an increase in offers on the Starbucks app and have been taking advantage of the deals.
Starbucks has acknowledged the need to lower prices and offer deals to attract customers back to their stores. Chief Financial Officer Rachel Ruggeri stated during an investor presentation that the company is seeing progress with the recent promotions, but there is still room for improvement. Customers are pleased with the increased offers, with many agreeing that coffee feels more fairly priced when it is available at a discount. Starbucks has been actively advertising their promotions and deals to customers through email and their app, encouraging them to check back for more offers throughout the summer.
With inflation driving people away from cafes and towards at-home coffee options, Starbucks has recognized the importance of offering competitive prices to keep their loyal customers coming back. By running promotions such as 50% off drinks and offering bundled deals, the coffee chain hopes to entice customers who have reduced their visits due to the high prices. Customers like Morgan have appreciated the discounts and promotions, allowing them to enjoy their Starbucks favorites at a more affordable price. Starbucks is working to improve their offerings and entice customers back to their stores, and customers are responding positively to the increased deals and promotions.
