Starbucks for a Buck
Starbucks, responding to competition from McDonald’s and Dunkin’ Donuts, is testing a $1 cup of coffee in the Seattle market. It sounds like it’s basically a short coffee of the day. It’s also offering free refills as part of the test. Both of these approaches actually undercut the competitors.
At least one stock analyst is skeptical, saying the coffee giant should be focusing on competitors in its own market — Peets and Caribou — but last time I checked, I didn’t see one of those everyplace I turned.
