"ValueMenu" news and stories

Have you ever gone into Starbucks in the morning and found yourself wishing that the ubiquitous coffee seller offered a combo meal, akin to those you can get at McDonald's and Dunkin' Donuts? Well, soon that particular wish will come true!

Howard Schultz, company CEO, announced on Tuesday that beginning soon, they'll be offering a variety of "breakfast pairings" at "attractive" prices. Starbucks revenues have decreased dramatically in recent months and so they're taking a number of steps in order to stem the tide of these losses, including closing of 300 stores and ceasing to brew decaf after 12 noon.

Speculators say that the decision to introduce these "breakfast pairings" was also motivated by the increased competition from McDonald's, as the hamburger giant has rolled out premium coffee drinks over the last 18 months.

What do you think? Would you be more likely to order a full breakfast from Starbucks if you could just say, "Give me a number one!"?

It's not that all the franchisees are against the dollar menu, but they don't want to have to spend money advertising it, either. That's understandable: they want customers to purchase the more expensive items so that they can make more money.

The franchisees argue that they're paying a higher minimum wage and food costs are skyrocketing. They're worried that more and more people are "trading down" for value menu items, and at the same time they're not getting enough new customers to make up the difference.

A spokesperson for the company said that there will always be a little bit of push and pull, but that problems will always be resolved because the company only makes money if the franchises do.

Er, good luck.

[Via Advertising Age]