Starbucks lovers are experiencing relaxation in their coffee bills these days and they can’t believe it’s real. If your bill seems lower too, despite rising inflation, you’re not imagining things.
Traditionally, Starbucks has refrained from offering discounts. But with inflation driving customers to make coffee at home, the chain has begun regular promotions to lure them back.
The popular coffee chain has started offering significant deals, with a grande Caramel Frappuccino listed at around $5.65 and a grande brewed coffee at about $3.65. However, customers are now often getting their favorite drinks for half the price.
Wall Street Journal obtained some documents which reveal that Starbucks ran promotions for about half of May, including their annual “Happy Hour” deal. “50% off a drink. It’s on,” Starbucks announced in a recent email to customers, encouraging them to check the app all summer for more deals.
In June, Starbucks introduced coffee and breakfast food bundles starting at $5, similar to McDonald’s $5 Meal Deal. Rising food and grocery costs have led many to reconsider their caffeine habits, prompting Starbucks to offer these deals to win back daily coffee drinkers.
So far, the response has been positive. “We’re seeing progress so far, but we’ve got a ways to go,” Chief Financial Officer Rachel Ruggeri said during an investor presentation this month.
Anthony Fumo, a 31-year-old account director from Philadelphia, has noticed the increase in offers on the Starbucks app and has been taking advantage. “At 50% off, the coffee begins to feel more fairly priced,” Fumo told WSJ.
With continuous promotion and deals, Starbucks hopes to bring back loyal customers and maintain its competitive edge in the coffee market.
