Starbucks Offers Reusable Plastic Cup for $1

starbucks_coffee_cupCoffee retailer Starbucks Corp. (NASDAQ: SBUX) will begin selling a reusable plastic cup for $1 at all its U.S. and Canadian locations in an effort to reduce the amount of waste generated by the company's current paper cups. The company has long offered a $0.10 discount to customers who bring their own cups, and the new reusable cups will be eligible for the same savings.

A Starbucks executive said that in test marketing at 600 stores in the Pacific Northwest, the number of reusable cups brought in by customers jumped by 26% in November compared with November 2011.

At one time Starbucks set a goal of having 25% of its cups be reusable by 2015, but the company has since lowered its sights to just 5% reusable cups. Less than 2% of the cups used at Starbucks in 2011 were reusable.

Whether the company's efforts will pay off remains to be seen. A more effective way to change consumers' behavior might be to charge more for coffee in paper cups, but that could cut sales.

Or maybe Starbucks could promote its recently introduced $7 cup of coffee by giving away this reusable tumbler with each cup. Two birds with one stone you might say.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Food, Retail Tagged: SBUX
Read Full Story

Markets

DJIA 25,058.12 -6.38 -0.03%
NASDAQ 7,820.20 -5.10 -0.07%
NIKKEI 225 22,697.88 -66.80 -0.29%
HANG SENG 28,224.48 213.62 0.76%
DAX 12,561.42 -124.87 -0.98%
USD (per EUR) 1.17 0.01 0.61%
USD (per CHF) 0.99 -0.01 -0.60%
JPY (per USD) 111.41 -0.95 -0.84%
GBP (per USD) 1.31 0.01 0.85%