Responding to recession
As the recession causes more people to turn to payday loans, Starbucks is responding to the economic downturn with a “value menu.” The coffee shop chain, once viewed as a symbol of trendiness and affluence, will start offering product pairings to ease costs for customers.
Starbucks’ new product pairings will go for $3.95 each. One option includes a tall latte and oatmeal or coffee cake. Drip coffee drinkers can now get a breakfast sandwich with their drink at the value menu price.
Starbucks says customers will save an average of $1.20 compared to what it would cost to buy both items at regular menu price. With those prices, people certainly won’t be needing payday loans to cover breakfast.
Starbucks is facing a couple of obstacles in addition to general economic downturn. Lowering prices is a bit of a catch-22 for the coffee giant, who has always marketed itself as a high-class, high-quality brand that was worth the extra money customers spent there. It must lower prices to keep customers, but it also must maintain its image to keep customers. ... click here to read the rest of the article titled "People Turn to Payday Loans, Starbucks to Product Pairings"