In the rapidly evolving coffee wars, Starbucks says it is about to test two ways to appeal to cash-strapped consumers--$1 cups of coffee and free refills.
Faced with growing competition from cheaper rivals, Starbucks Corp. is selling small cups of drip coffee for $1 with free refills as part of a test in its hometown.
That's about 50 cents less than the Seattle-based coffee retailer normally charges for an 8 oz. cup of joe, though prices vary from store to store.
The suggestedprice for a slightly larger 10 oz. cup of premium roast at competitors like McDonald's and Dunkin' Donuts is $1.07 and $1.39, respectively, the companies said Wednesday.