What's Behind Starbucks' New $5 and $6 Breakfast Combos?

Starbucks Introduces Breakfast Combo Deals

To boost sales, Starbucks has launched two new breakfast combo deals, offering customers a coffee or tea paired with a croissant or breakfast sandwich at a discounted price. This marks a significant shift for the coffee giant, which has traditionally focused on the quality and variety of its offerings rather than bundling and deals.

The New Deals

Starting Tuesday, customers can choose from two combo deals:

1. A 12-ounce iced or hot coffee or tea with a butter croissant for $5.

2. The same drink options are paired with a breakfast sandwich for $6.

Only a limited selection of drinks is included, but customers can pay extra to customize their orders.

Why the Change?

Starbucks' move to introduce these deals comes as the company faces slumping US sales. In the first three months of 2024, Starbucks reported a 3% decline in comparable US sales and a 7% drop in comparable transactions year-over-year. CEO Laxman Narasimhan attributed these disappointing results to more cautious consumer spending, with many customers choosing to eat at home to save money.

The Costs and Customizations

While these combo deals can offer significant savings, the costs can add up quickly with customizations. For example, adding sauce and cold foam to a tall iced coffee in Manhattan increased the price from $5 to $7.45. Upgrading the drink size also impacts the overall discount, making it less beneficial in some cases.

Starbucks' breakfast sandwich range includes six items, with some, like the double-smoked bacon, cheddar, and egg sandwich, costing an additional $1, bringing the total to $7.

Availability and Duration

The new breakfast combos are available for a limited time, although Starbucks has not specified how long the promotions will last. The offers are available all day, giving customers flexibility in their breakfast choices.

In summary, Starbucks' new breakfast combo deals aim to attract more customers by offering affordable meal options, a strategy typically seen in fast-food chains. While these deals provide savings, customizations can quickly increase the overall cost.