How You (and the Economy) Changed Starbucks

Much the same way many Americans are taking a closer look at the way we spend our dollars, so too are the businesses looking to lure (or keep) us spending the dollars we do have in their establishments. In this new economy, no marketing tactic is too base, no idea too outlandish, even if it means turning a brand it’s taken years to build on its heels to remain a viable factor in our budgets.

We began cutting back on recreational shopping, so retail stores respond with a state of seemingly perpetual sales. We started driving less, and prices at the pump took a nosedive. Even car dealers chose to “assure” us not to be afraid to buy a new car; we can just return it if we lose our income — no harm, no foul.

Even Starbucks, a company known for catering to coffee aficionados looking for more than the average cup of joe — and previously willing to pay for it — quickly learned how much things have changed. The days of throngs of customers stopping by for their daily grande-half-caf-skinny-latte fix are proving to be a thing of the past. For many, that daily coffee run was among the first line items to hit the cutting-room floor, and the coffee-brewing giant has definitely felt the effects. Their business has dropped by 10 percent in the first quarter.

So to stay alive, a company built on coffee elitism is taking its cues from an industry designed for the Average Joe: fast food. That’s right, the house that yuppiedom built is willing to sully its reputation by offering value meals. (I’m sorry, discounted “pairings.”)

Starting March 3, instead of a $4 designer coffee, Starbucks fans can get a coffee and breakfast item or “artisan” sandwich for around the same price.

This latest development just seems like another sign that the economy has come full circle and shows how far we’ve moved away from conspicuous consumerism back to practical consumption.

What’s your take on Starbucks’ attempts to relate to the needs of consumers today? Will value meals lure you back to Starbucks? Did you ever leave?

Tags: starbucks, starbucks and recession

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