Starbucks is testing out a new $1 coffee and free refill price program. The test is being conducted in Seattle stores.
The $1 cup would see the return of the "short" cup size, about fifty cents off the tall price for drip coffee. Free refills will be extended for brewed coffee, though the sizes applicable were not specified. This would put the Starbucks brew back on teh same pricepoint as competitors.
The move to this new price point has been prompted by slower consumer spending and new competition from fast-food rivals, such as McDonald’s, whose coffee offerings have expanded.
Starbucks says that "This test is not indicative of any new business strategy." They claim the testing is a part of their ongoing business and will not comment on the test until a decision has been made.