It looks like times might start getting tough for the coffee giant, Starbucks. According to an article in today’s BBC News Business Section Starbucks is expecting sales to drop next year as U.S. consumers tighten their belts against the rising costs of food and gasoline. Starbucks is expecting its current customers to go to other establishments that sell cheaper coffee!
If this is the case then why doesn’t Starbucks consider dropping the price of their coffee so that they don’t lose their current customer base? In fact, they may increase their current customer base if they do drop their per cup price. I guess that would be too simple or maybe it’s a matter of pride.
What do you think?