Upscale coffee chain takes a page from the fast food industry in a bid to fight plunging sales
Starbucks is launching its first-ever value meal. Customers will pay $3.95 for a latte with a coffee cake or a bowl of oatmeal, or a regular coffee and a hot breakfast sandwich, amounting to savings of up to $1.20. The breakfast program, named “Hello To A New Day”, will be rolled out in U.S. stores beginning March 3. The move is something that CEO Howard Schultz vowed he would never do, and it comes as the gourmet coffee chain faces a sudden downturn. Net income has fallen by 69 per cent and sales are down 10 per cent this financial quarter. The company recently announced it would shut 300 stores and cut up to 6,700 jobs.