Starbucks Corp‘s SBUX brand is not synonymous with bargains. However, the coffee chain could be poised to change that with the release of a new value menu meant to appeal to the cash-squeezed consumer.
What Happened: Starbucks rolled out its “Starbucks Pairings Menu” to customers on Tuesday.
The deal offers a tall iced/hot coffee or tea paired with a butter croissant for $5 or a tall iced/hot coffee or tea paired with a breakfast sandwich for $6. The offer is available all day. Prices will be higher if customers order drinks in a larger size or if customizations are made.
The deal is a significant discount, almost 30%, if the two items were ordered separately.
Why it Matters: Starbucks’ stock tumbled in early May after disappointing quarterly financial data. Starbucks has struggled to maintain customers amid increased prices and broader market inflation.
The Seattle-based coffee chain joins several other chains, including McDonald’s Corp MCD, which have introduced deals in recent months as value propositions to customers. McDonald’s will have a similar $5 meal deal promotion for this summer.
A study from Finance Buzz found that prices at fast food chains have increased more than inflation since 2014. At Starbucks, prices have increased by 39% in that timeframe.
Also Read: Starbucks Heats Up Delivery Wars: Grubhub Partnership Promises Exclusive Perks For Coffee Lovers
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