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Starbucks said to test value deal

SEATTLE With quick-service chains encroaching on its turf, Starbucks is borrowing one of their standard marketing tactics: A $1 value option. The coffee giant is testing a new dollar-a-cup “short” serving size with free refills, according to The Wall Street Journal.

Typically Starbucks charges about $1.50 to $4 for a cup of coffee, depending on the size and flavor. The discounted price would undercut what consumers pay at McDonald’s and Dunkin’ Donuts, which have both been touting the relative value of their coffees.

Earlier this month, Starbucks Corp. announced a reorganization, saying the company would slow U.S. expansion, close underperforming units and refocus on improving customers’ experiences. The company operates or franchises about 15,000 coffee shops.

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