- Starbucks has launched two breakfast combo deals, pairing a coffee or tea with a croissant or breakfast sandwich.
- Only a limited range of drinks appear to be included, but you can pay extra to customize them.
- Bundling has long been standard practice in fast-food, but it's a surprise move for Starbucks.
In an unusual move for the coffee giant, Starbucks is getting into bundling by offering new $5 and $6 deals.
The chain launched the two combo deals on Tuesday under what it calls its "pairings menu."
Customers can get a 12-ounce iced or hot coffee or tea paired with a butter croissant from $5, or with a breakfast sandwich from $6.
Starbucks' US sales have been slumping
Bundling has long been standard practice in the fast-food industry — think of all the burger chains that let you make your order a meal by adding fries and a drink for a couple of extra dollars — but it's a surprise move for Starbucks. In its marketing, the coffee chain has tended to focus on the quality and range of its products rather than pricing.
David Henkes, senior principal at foodservice research company Technomic, told CNN that Starbucks had "in many ways been a symbol of affordable indulgence" and the company seemingly now felt that "their affordability has softened to the degree that they need to use deals to drive traffic."
Starbucks posted poor earnings earlier this year. In the first three months of 2024, Starbucks' comparable US sales declined 3% year-over-year, with a 7% drop in the number of comparable transactions. CEO Laxman Narasimhan called the results "disappointing."
"We continue to feel the impact of a more cautious consumer," Narasimhan told investors at the company's latest earnings call, adding that some customers had been saving money by eating more at home.
It's not just Starbucks. Other restaurant executives have echoed Narasimhan's comments, saying that diners are cutting back. Some fast-food chains have introduced new offers and vowed to stop hiking prices to win back customers.
It's easy for the price of Starbucks' combo deals to rack up
Starbucks has six items in its breakfast sandwich range. Choosing the double-smoked bacon, cheddar, and egg sandwich and the Impossible breakfast sandwich puts the bundle's price up by $1 to $7.
Starbucks' prices vary considerably by location. At a Starbucks in Manhattan, ordering a butter croissant costs $4.45, while two of the breakfast sandwiches cost $5.45, and four cost $6.45.
If you're in the mood for a croissant or sandwich and a drink, the combo can save you considerable money.
But if you want to customize your drink then the prices start to rack up. When Business Insider added sauce and cold foam to a tall Starbucks Iced Coffee Blend, the price of the croissant and coffee deal went up from $5 to $7.45 at the Manhattan location.
You can also upgrade the size of your drink for an extra charge, though it appears you get less of a discount overall. Upgrading a tall Iced Coffee Blend with no modifications to the 24-ounce venti version brings the croissant deal to $6, an increase of $1, despite a venti Iced Coffee Blend only costing $0.50 more than a tall.
Other drinks included in the deal include some hot coffees, like Starbucks' Decaf Pike Place Roast and Veranda Blend Clover Vertica, hot teas, like its Royal English Breakfast tea, and iced teas, like its iced black tea.
A number of drinks didn't appear to be eligible when ordering for collection via Starbucks' website, including cappuccinos, Americanos, cold brew, tea lattes, and some of its iced green tea.
Starbucks notes that the two combos are only limited-time offers, although it doesn't say how long the promotions will last. CNN reported that the offer is available all day.
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