Starbucks Joins ‘Value Meal’ Trend With Lower-Priced Offers
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Key Takeaways
Starbucks is launching lower-priced offers through a “Pairings Menu.”
The Pairings Menu allows customers to order a beverage with a food item for a lower joint price than the selections might cost if purchased separately.
The move makes Starbucks the latest chain to roll out deals amid a pullback in discretionary spending as inflation squeezes many consumers’ wallets.
Starbucks (
SBUX
) has become the latest chain to join the
“value meal” trend
with the launch of lower-priced offers in an effort to bring in consumers feeling the pressure of inflation.
The coffee chain announced a “Pairings Menu,” which allows customers to order a drink and food item for a lower joint price than the selections might cost if purchased separately. For example, options include a coffee or tea with a buttered croissant starting at $5, or a beverage with a breakfast sandwich starting at $6. Adjustments or additions to the menu could cost extra.
Move Comes After Earnings Miss Amid Spending Pullback
The Pairings Menu rollout comes after Starbucks
reported
quarterly earnings and revenue that fell short of estimates, and
same-store sales
declined. Starbucks CEO Laxman Narasimhan said that “many customers have been more exacting about where and how they choose to spend their money” because of current economic conditions.
McDonald’s and Wendy’s Among Others With Discounted Offers
McDonald’s (
MCD
), Restaurant Brands International’s (
QSR
) Burger King, and Wendy’s (
WEN
) also recently announced value menu items as
inflation
has led many consumers to pull back on spending.
Shares of Starbucks were 2% lower at $79.92 as of 3:15 p.m. ET Tuesday, and have lost close to 17% since the start of the year.
