Customization And Culture: How Starbucks Turns Pricey Coffee Into Loyalty – CoffeeTalk

Starbucks has maintained its loyal following despite higher prices than competitors like Caribou, Tim Horton’s, and Dunkin’. A recent survey by Technomic found that about half of consumers surveyed said Starbucks is the least affordable coffee chain, with Caribou, Tim Horton’s, and Dunkin’ being much more affordable. This is due to inflation, with many now seeing fast food as a luxury. However, experts at The Food Institute argue that price isn’t everything; Starbucks retains its customer base through its brand experience, quality, and personalized offerings.

Customers return for the convenience of mobile ordering, customization, and the café atmosphere, which fosters loyalty. Sustainability hinges on maintaining value perception. Starbucks’ prices vary depending on location, but a simple 8-ounce drip coffee costs about $3.35, while specialty drinks like oat milk latte or iced apple crisp oat milk shaken espresso cost $6.75. Customizations like an extra espresso shot or whipped cream earn the company $1 billion a year.

Starbucks has positioned itself as more than just a coffee shop – it’s an experience. Customer loyalty will be sustained despite higher prices, as evidenced by 11% growth YoY otherwise. James Callery, head chef and co-founder of the Cross Keys in Newbury, England, said drinking Starbucks has become “almost a fashion statement, like carrying a designer handbag but with caffeine.”

Starbucks has tried to address affordability issues with “pairings,” its take on value meals. However, Haycock believes that younger customers care more about a company’s political and charitable efforts. Starbucks needs to craft their political and charitable strategies to match this consumer’s needs.

Read More @ The Food Institute