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Starbucks has announced the introduction of 'value meals' in an attempt to counter the recent decline in sales over the last quarter. The American owned coffee giant recorded a ten percent decrease in sales in the 4th quarter of last year.
Industry insiders explained that the lower sales were likely caused by rival fast food businesses like Maccas recently launching similar beverages at lower prices.
McDonalds vs Starbucks Coffee
Last November Maccas had introduced a premium range of espresso based beverages at low prices. Consumers responded well to the new beverages, and that hype mixed with the image that Maccas provides great value deals whereas Starbucks was more of an upscale brand... consumers believed that they had discovered a way to cut back cost and still get their caffeine fix. Something a lot of Australian consumers would consider during the economy crisis Australia is experiencing.
Starbucks is expected to introduce its 'value meals' at the end of this quarter. Will it work? That remains to be known but experts say that it would help discard Starbucks's upscale image, something that will have a negative effect for the coffee company during the current global economic downturn.
