Starbucks Going for $1 Coffee

In the rapidly evolving coffee wars, Starbucks says it is about to test two ways to appeal to cash-strapped consumers--$1 cups of coffee and free refills.

Faced with growing competition from cheaper rivals, Starbucks Corp. is selling small cups of drip coffee for $1 with free refills as part of a test in its hometown.

That's about 50 cents less than the Seattle-based coffee retailer normally charges for an 8 oz. cup of joe, though prices vary from store to store.

The suggested retail price for a slightly larger 10 oz. cup of premium roast at competitors like McDonald's and Dunkin' Donuts is $1.07 and $1.39, respectively, the companies said Wednesday.


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