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Guest Thinkers — February 22, 2011

Starbucks rips another page from the McDonald’s playbook

Dominic Basulto

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Starbucks is quietly rolling out a pilot program of $1 coffees and free refills to customers at select stores in Seattle. Despite all indications that Starbucks is slowly morphing into a McDonald’s-like fast food chain complete with dollar menus, highway rest stops, and drive-through windows, Starbucks spokespersons vigorously deny the notion, claiming that the pilot “is not indicative of any new business strategy.” Instead of innovating its way out of its current predicament,

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Starbucks seems to be grasping for ~~straws~~ coffee stirring rods. Years from now, the story of the slow erosion of the Starbucks brand is going to be required reading at the nation’s leading business schools.

[image: Starbucks Drive-Through in Japan]

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