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Uhh… Starbucks too?

February 10, 2009

starbucks_logo

Damn, they’re slashing it left, right and center.

Starbucks is now resorting to flogging coffee-and-sandwich combos at $3.95. In the US that is, according to this report from CNN.

“Research done by William Blair & Co. suggests Starbucks’ price premium “has nearly evaporated over the past 18 months, with pricing now largely on par with Dunkin’ Donuts.”

Whoa, Dunkin’ Donuts? You’ve got to be kidding me.

I doubt if we’ll be seeing Starbucks or McD slash their prices in Malaysia or Singapore anytime soon. Now why do you suppose its so hard for prices to come down this part of the world?

  1. There is no recession in Singapore or Malaysia. Its just a rumor.
  2. Recession or not, when it comes to food, Singaporeans and Malaysians are always happy to pay a premium, including for Big Macs and branded coffee.
  3. Starbucks and McD have deep pockets. They can survive in Sg/My even with only a few customers a day.
  4. You’re kidding. They would rather shut down the chain than offer a discount.

Interesting times ahead.

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4 Comments leave one →
  1. February 11, 2009 9:35 am

    McD is already having promotion. You get value meal for about RM6-7 from 12pm – 3pm.

    Seriously? You mean I can get a Big Mac combo meal for less than RM11 during those times? Shows u how long I haven’t gone to McD’s, haha. πŸ˜€

  2. February 12, 2009 9:19 am

    Eh…not sure about Big Mac. Maybe i’ll go there today. I don’t eat beef though. πŸ˜€ Will let u know if there’s a promotion for Big Mac combo as well.

    By the way, i prefer BK than McD πŸ˜€

  3. February 12, 2009 1:50 pm

    Checked. No Big Mac promotion πŸ˜›

    Hey thanks for checking it out. No Big Macs for me then. πŸ˜€

  4. October 26, 2009 2:55 am

    Rather shut down than offer a discount? lol… interesting take on business resilience, hehe.

    They call it “managed exit” from markets suspected to be unprofitable in the long run. Basically cutting loss.

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