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 20,894.83 89.99 0.43%
NASDAQ 6,133.62 49.91 0.82%
S&P 500 2,394.02 12.29 0.52%
NIKKEI 225 19,653.96 -24.32 -0.12%
HANG SENG 25,468.37 77.03 0.30%
DAX 12,619.46 -19.23 -0.15%
USD (per EUR) 1.12 0.00 0.09%
USD (per CHF) 0.97 0.00 -0.01%
JPY (per USD) 111.16 0.27 0.24%
GBP (per USD) 1.30 0.00 -0.08%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.