$ Menu Fever

With the global economy going southwards and consumer spending at record lows, even fastfood joints in the US are seeing a sea of change in their customer base. To loosen the noose around customer’s money bag they have started introducing 1$ menu items. This was started by Taco Bell, though at that time it was meant to take on McDonald’s than anything else. Surprised by such an audacious move, McDonald’s launched its own dollar menu. This dollar menu included not only burgers but also lattes, the latter starts at a $- plus prices.

During all this, Starbucks was being severely censured by its critics for not targeting the mass customer. But that was then. Now, as everybody concurs, the 4$ latte is more of a luxury. And so to retain its customers, Starbucks has started offering 1$ coffee. There is a catch here, though. The coffee is not brewed, rather its an instant version. These packages are targeted people who don’t have the luxury to wait for their coffee.

But it raises some serious questions. Starbucks coffee has always been associated with class. An image that portrays a successful person who has the time and money to enjoy the Starbucks barista. Would this image be diluted because of launch of the instant coffee? Would customer’s who can still afford to pay $4 or more for a coffee still go to Starbucks? Only time will tell.