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July 09, 2008

Starbucks tests several promotions across the US

The promotions vary by region and timing. (They're all described here.) Through July 23, Starbucks is giving away 12-ounce iced coffees on Wednesdays to customers in New York City, Philadelphia, Washington, Boston and Detroit who present an "iced brewed coffee card," a reusable voucher distributed in stores and newspapers. In other cities  customers with a receipt from a morning purchase can buy a 16-ounce cold beverage for $2 after 2 p.m., or get a $1 discount on a cold drink after 1 p.m. (Read the Associated Press story)

Comments

Woooonderful! Great! Now we are going to have folks dig for morning receipts of other peoples purchases so they can get the deal. We are already having a problem with the Iced Coffee cards. Someone scanned and e mailed a copy of one to their entire office!

Starbucks tries all kinds of things all the time. And if I were an AM customer, I would, without a doubt come back and get another one for $2 after work.

People need to be addicted to coffee. Not only should we get them to come in every morning, but we should get them to come in after work. As an added bonus, they won't be able to sleep well at night. We get more money *AND* the ability to laugh at the suffering of others. And all without the DEA taking a second look at us. Excellent! High fives all around!

And since they don't sleep well at night, they will most likely HAVE to return to perpetuate the cycle the next morning. Muahahahaha!

Wow...Starbucks is getting desperate. I'm so glad my store isn't closing. :)

We had about a million of these free tall iced coffees today, it was ridiculous. Everyone was like, "Oh, man, it's Wednesday."

wouldn't it just be cheaper to have a rewards card?

im just glad they don't have such dumb promotions here in canada.. at least, i dont think they do.

Seriously?? Seriously?? Wow, they really are desparate!! I tried for so long to tell myself that Starbucks isn't competing against McD or Dunkin....I hate to say I was wrong. Believe me, I know times are tough for everybody..but really?? I thought we were supposed to be "the premier purveyor of coffee"...guess we lost the premier somewhere with the Sorbetto, Vivanno's and oatmeal. I'm just saying....

This is OT, but I just have to ask it: Will Starbucks really serve oatmeal? I mean, plain ol' unadultered, Quaker Oats-style oatmeal?

Some can look at it as a move of desperation, but I choose to look at it as Starbucks giving discounts to customers due to our hurting economy. Yes, will sales help our business...absolutely. But this also helps people who still like to treat themselves.

We are in a market that is doing the Treat Receipt, where customers make any purchase in the morning and then are given a stamped receipt for $1.00 off any cold beverage after 1pm. Customers are loving it. We are even telling customers that if they aren't going to use the receipt to pass it on to a friend. Who cares who uses it? We are still making money off the drinks.

I say...way to go Starbucks! This is a good move!

Lattegirl--

Ask your sm if you guys are really making money. And how much money you guys are losing.

NO TO OATMEAL...at least in AZ. We'll have a treat called "Berry Stella" which is whole grain and like a breadfast bar. It will contain wheat, oats, raspberries & blueberries. It will also have Omega 3, protein and fiber. Yummmm!

great so now more customers can come in and demand free coffee because they got it free at some other store somewhere in the country. and of course I shall just say yes.

great so now more customers can come in and demand free coffee because they got it free at some other store somewhere in the country. and of course I shall just say yes.

formershift -
I don't need to ask my SM if we are really making money. If a customer comes back in the afternoon to get a drink and we discount the iced drink $1.00 we are making money off of that drink. And remember the customer is coming in twice that day and may be coming back in the PM when they usually wouldn't since they have a $1.00 off deal. Plus who's to say they don't buy a pastry for an afternoon treat too? So, yes we are making money off of this deal.

Dear I hate my job,
in NJ we have been doing the free iced coffee on wednesdays for about a month now, before that it was a free tall hot coffee. this is not new or that hard, it is just plain coffee.with 12,000 partners facing unemployment if you hate your job quit and make room for someone who needs, wants,and loves their job.

*shrug* ok, if you say so. The numbers can be found on the portal, btw. That's the only way to know for sure.

your'e right and I know. We've been doing the free iced coffees as well, I've just had a really bad couple of days at work lately. thanks for some perspective.

You know, I don't even need a free iced coffee - I just wish that the iced coffee would cost the same as a regular hot coffee.

The addition of some ice does not warrant a tall iced coffee being over $2.00, while the regular tall drip is at a more reasonable price.

STARBUCKS is starting a test pilot for the STARBUCKS GOLD CARD program. I received an e-mail this morning about this special test pilot.

I totally know what you mean about bad days! I have been feeling that way all week and all i can do is drive home telling myself at east I have a job for now! :) hopefully there will be no bright ideas about free frappacinos or you might have to remind me about what I said!!! :)

Latte Girl -

Where in AZ do you work, Phoenix or Tucson? I am in Tucson and frequent the same Starbucks there 5 times a week on my way to work in the morning, and a different one on the weekend, but no one has stamped my receipt. Maybe it's a Phoenix thing?

Hey wondering! The treat receipts just started today....I'm in Phoenix, but I do think it is an all over AZ thing....but not sure. People in my store were loving it today....everyone talking about how they were going to pass them along to friends. It will be nice to have some higher customer counts in the pm.

Just so you know what your fearless leader has been doing while you twist in the wind.

http://seattletimes.nwsource.com/html/sonics/2008041944_websoni09.html

JUST SOME INSITE FROM A STORE MANAGER- THE COST FOR A ICED GRANDE VANILLA LATTE IS AROUND 3.50 IT COSTS US .32 CENTS. A VENTI BREWED COFFEE IS 2.00 IT COSTS US .8 CENTS. THATS FOR THE BEVERAGE BASE, CUPS SLEEVE AND ALL. SO IF WE DICOUNT A BUCK OF COURSE WE STILL MAKE MONEY.I THINK THIS IS A GREAT MOVE!

Same promotion in my area - but it's hot OR iced, and EVERY DAY until the 14th! We might be losing a little money right now, but we're getting a good response, so hopefully it will increase sales in the future. It's definitely brought in some new customers...and I think that's the point...

I've definitely noticed and increase in the number of people tipping...and how excited that small cup of coffee makes people...only had a couple people upset that they couldn't use it for a frappuccino or latte...but some of the clever ones realized they could ask for vanilla and extram cream!

Mikey,
Is that something through the Duetto or just any registered Starbucks card? Are you a customer or a partner? I'd love to hear more about this new test program ...
Melody

Nothing more fraustrating to an investor than to have your stock value in the toilet & learn that the company is giving things away for FREE! I'm selling my stock tomorrow! Put an end to my misery with this shoot from the hip company. Can't see them rebounding.

The free iced coffee promo is definately driving traffic to our stores on Wednesdays. It was once our slowest day of the week and now it's one of our best days. So we give away some free iced coffee, those customers are buying pastries and other drinks along with their freebie.

In some cases, customers are coming in that have never been in Starbucks before and we're given an opportunity to show them what we're all about. I love the iced coffee promo and hope we keep it up.

lattegal- You're misinformed. Everyone (to my knowledge) is getting the berry stella. The oatmeal is suppose to start in september and replace sandwiches as a healthier option. It's suppose to come in a thermos and we just add water.

Of course, I could be completely wrong. This is secondhand information.

Hi Melody,

The Starbucks Gold Card was 'handpicked' by Starbucks Coffee Company. They are testing this Gold Card benefit in two cities in North America. Also, included, as a Gold Card benefit, it seems Starbucks can track your purchases, and will provide their best customers with freebies, such as after buying 10 drinks, get one free, plus lots of free perks, and also giving a free drink of your choice on your birthday. Each specially selected participant will get a test Starbucks Gold card for this trial period which begins during this fall. If successful, Starbucks will roll out this pilot project nationally. If not, it will cease from there. I know through mystarbucksideas.com, there were lots of feedback about having a 'gold' card. So, looks like Starbucks is listening to customer feedback and testing this option to keep loyal customers.

I heard about the gold card program as well, I do kind of like the idea, but being hand picked might give somebody more of a superiority complex, much like having a platinum, or diamond card in the casino... where you expect everything for nothing.

i'm a customer, and i'm LOVING the free iced coffee wednesdays. i live in new york where there's a starbucks every 2 blocks, so i can easily hit up 10 in a day.

Wondering in Tuscon - Yes, I'm in the Phoenix market.

I haven't heard anything about Oatmeal in the Fall, so I'm not commenting on it. Just thought that perhaps people found out about our new breakfast bar which contains "oats" and thought they'd start a Oatmeal rumor.

Melody -

You should have a gold card even if you are in Seattle! Howard, if you read this, send Melody a gold card...she's one of Starbucks best customers and biggest fans!

:0)

I think that Starbucks gives toooo much away for free. Many customers only come on Wednesdays, or when they have coupons. All coupons should come as a result of buy one, get one free. It doesn't drive business because in a failing economy people are doing anything to save a buck, so if they can get a free, quality drink/treat once a week- they will, and just wait till next Wednesday to indulge again!

Another point: Starbucks said they wanted to get back to coffee shops and cut out drive thrus. I personally think that in today's society, we need drive thrus to prosper. Yes, it's nice to sit down and have coffee, but you know what- it's America. We are a lazy, fat nation and people don't want to get out of their car. So if u want profit and results- drive thrus are the answer (except for in metropolitan areas where everyone uses public transportation or walks!)

Sherri -

It's just funny that you would tell me that I'm "Misinformed" and then say that you have second hand information.

Yes, I think everyone is getting the Berry Stella since it's in the Summer phase 2, but I only spoke for AZ since that's where I am and so that I didn't give out incorrect information.

As for the Oatmeal, I guess we'll see when it's posted on the portal.

People have been circulating the iced coffee card in their e-mails, because a printout showed up in my store. I could barely read it, but there was no "HI" under the participating states. I have a feeling I'll be seeing a lot more of those.

REMEMBER- JUST SAY YES!!!!!! It's EZ for corporate to inforce that rule. Unfortunately, the word is out on JSY policy, and the stores have to deal w/it on a daily basis- totally abused.

Starbucks needs stop trying to fix the problem by adding more drinks to the menu.

I just love how some customers think that an ICED COFFEE is a Frappuccino! They get all PISSY when we're like -- No, it's for a free ICED COFFE. So then they say, Caramel Macchiato? GRRR...I'm soo over it.

SBUXGAL,

Your total cost fo product that you deliver to the customer is far more than the ingredients--you must also consider rent/lease, all the associated employee costs, and much more.

Not enough space here to given you a short course in what it costs to run a business. In any food business the cost of what you deliver to the customer is only 10% to 20% of what it costs to deliver it.

Been doing the daily coffee promotion for about 2 (3?) weeks now...I lost count! It's still making the customers happy, and actually opening them up to the fact that we do actually have something other than the frappuuccinos and white mochas they usually order! We're still having to add extra Classic and cream to the iced coffee for them, but at least they are willing to try something new. It's actually made my job a lot easier...making the same drink over and over again and people actually SMILING and saying THANK YOU! Haha...I'll miss that excitment when this is all over...

well I haven't seen any information that says you can have two dollars off with a receipt, only the one dollar off. The promotions seem like a joke to me, first, who can afford to visit starbucks twice a day? once is spendy enough, seems to me they give promotions that really don't give back at all, just pads their pockets. for instance, why limit the dollar off to just the same day? why can't you bring back your sales slip for any day past 1:00? also the free surups when you load a starbucks card limits regular mocha as a free surup, but you can have the nasty sugar free version! I only get one pump and I have to pay the price for a full mocha, loading my card does nothing for me in benefits. some barista's charge me for the one pump, sometimes they don't, how about a uniform policy on the one pump, you charge or you don't. I am a very loyal customer, but Im getting fed up with the hoopla over new rewards that have so many limitations that its no reward at all. nice try Starbucks, but you guys need to go back to the boardroom and give customers some real rewards.

Vonnie, despite what you believe, a good percentage of our customers come in 2-3x a day...in fact research has shown that in this economy, it is the occasional visitor who is coming in less, however the regulars still come in, well, regularly at least 1-3x a day.

I do come in everyday. my main gripe is the rewards are not rewarding me in any way, why can't mocha surup be free like any other of th surups with the starbucks card, I only use one pump, gimmie a break.

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