SEATTLE Starbucks Coffee customers would be more likely to renew their patronage if the chain lowered its prices instead of adding new menu items. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
The financial firm Morgan Stanley & Co.’s survey of 2,500 coffee drinkers found that nearly one-third of existing Starbucks customers have cut back on their number of visits in the past three months, while just 17 percent of McDonald’s guests and 18 percent of Dunkin’ Donuts coffee customers are visiting those chains less often. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Of the Starbucks customers cutting back on frequency, 84 percent blamed economic pressures, Morgan Stanley said. When asked what would increase their visits to Starbucks, 65 percent said lower prices would. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
The conclusions run contrary to the long-held view by Starbucks management that its declining traffic can be reversed through the introduction of new, more health-oriented menu items as well as better equipment and improved barista training, all of which are aspects of the company’s transformation agenda, launched in January. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
For months, analysts have been pressuring the 16,548-unit chain to focus on value. But Howard Schultz, Starbucks’ chairman, chief executive and president, instead has maintained that the key to a turnaround is a “relentless focus on reaffirming our coffee authority.” —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Meanwhile, McDonald’s has said financing remains available for completion of its 13,000-unit U.S rollout by next year of espresso gear to sell specialty coffee beverages that would be priced about $1 less than comparable Starbucks items. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
However, while McDonald’s does appear to be driving traffic with its new coffee program, it does not seem to be tempting customers away from Starbucks, the Morgan Stanley survey concluded. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
When asked by the firm to say what would cause them to switch to McDonald’s for their coffee, 48 percent of Starbucks customers said they had no interest in switching. Another 24 percent said they might consider switching if McDonald’s improved its coffee. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Only 28 percent of Starbucks customers said they had tried McDonald’s new coffees and would try them again. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
The customers of Starbucks and McDonald’s believe their respective brands are more convenient, though Starbucks’ customers agreed that McDonald’s offered better value. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
“We think that Starbucks needs to improve its value image with customers by promoting a value tier on the menu that can help recapture lapsed users,” the Morgan Stanley report concluded. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
It said 31 percent of Starbucks’ customers also believe a more aggressive customer rewards program might increase their frequency. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Starbucks launched a reward program earlier this year that offered free flavor shots to repeat visitors as well as refills on brewed coffee and free Wi-Fi service, for example, but few of the survey respondents viewed such perks as motivating factors. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
About one-quarter of Starbucks customers said the chain’s “$2 drinks after 2 p.m.” discount program would bring them back in the afternoons, but almost two-thirds of that group said they were already heavy or medium users. Sixty-nine percent of Starbucks customers said the discount program would not bring them back for afternoon visits. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Over the past several months, Starbucks has been fleshing out its menu offerings, debuting smoothielike drinks, new Italian-style breakfast sandwiches called “Piadinis,” more health-oriented whole-grain pastries and a hot-selling oatmeal with topping choices. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Among those surveyed, the chain’s new yogurt-based Sorbetto drinks, available in Southern California stores, and the smoothie drink Vivanno scored well. Sixty percent of those who had tried a Vivanno said they would come back for another, while 80 percent of Sorbetto drinkers said they’d go for seconds. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
The Morgan Stanley report, however, speculated that the impact on traffic would be minimal because the drinks are low-frequency items, unlike coffee, and cold drinks may not be as popular in winter months. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
When asked if they would be interested in purchasing items such as oatmeal, yogurt, fresh fruit and multigrain rolls at Starbucks, 40 percent said none of the offerings would appeal. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Twenty-three percent were interested in fresh fruit. Twenty percent liked the idea of a multi-grain roll or yogurt, but only 10 percent were interested in oatmeal. That response contradicts reports that Starbucks’ new oatmeal has become the best seller. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
“The oatmeal has been highly, highly successful,” said John Eccleston, a Starbucks research and development chef. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
The survey preceded the debut of the Piadini sandwiches. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
The survey found, however, that many Starbucks customers tend to be loyal, despite economic pressures. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed
Half of the Starbucks customer respondents said they would go to another Starbucks if their local coffeehouse was closed, indicating that the chain could see a 2-percent boost in same-store sales in fiscal 2009 from the closure of 600 branches announced earlier this year, Morgan Stanley estimated. —With the shell-shocked consumer economy posing huge worries for operators nationwide, a new study indicates that lapsed