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Showing posts from September 6, 2012

Starbucks is starting to act like there's something wrong with its expensive coffee

Forbes September 06, 2012 Starbucks ( SBUX ) stock has slipped lately, and it’s looking for ways to perk up. It ran a promotion on LivingSocial this week, selling $10 gift cards for $5. But the chain that pioneered a spendy coffee habit is acting like its product is too expensive, or something. This summer it agreed to sell discounted cups through Coinstar ( CSTR ) vending machines. It’s sending mobile deals to its best customers, as  (see YCharts) . And now Starbucks did a nationwide daily deal. Will consumers start to wonder how much it actually costs to produce that cup of coffee? It needs to protect that margin because investors are paying a premium for Starbucks versus the cheaper swill over at Dunkin’ ( DNKN ).