In a move that is either a strictly financial decision or a bid to lesson customer confusion while speeding up the wait time, Starbucks (NASDAQ: SBUX) has erased the “tall” coffee choice from its drive-thru menu.
The “tall” remains on in-store menus and, yes, you can still order a “tall” if you special-request it, but across the nation, that size has all but vanished on outdoor drive-thru signs. The new signage, which has been rolled out over the last few weeks, lists only “grande” and “venti.”
Starbucks has been mum so far on the recent change.
The new menus rely on big photographic representation, with little in the way of details. On top of removing the “tall” choice, iced coffees, ciders, donuts and other items are gone. The menu does add “Looking for something else? Please ask us.” Needless to say, there are likely a lot of questions being thrown at drive-thru Starbucks staff.
The removal of its “tall” is part of a new menu change that could, in part, help simplify ordering for its busy customers. When deciding between dozens of different drink options, size confusion only slows the process down further – which makes the drive-thru wait all the more unbearable. Perhaps to save customers from having to delay the process, Starbucks cut the options.
Of course, if Starbucks is so concerned with customers who have to pause to think between “tall,” “grande,” and vendi “venti” it probably makes more sense to rename them “small,” “medium” and “large.” For those who haven’t been schooled in the Starbucks lexicon, a “tall” is a small, with “grande” and “venti” meaning medium and large, respectively.
The real reason is likely to be more of a financial one. These days coffee prices are on the rise – and Starbucks has said it will be able to absorb the price spikes internally, which could amount to closing some international locations. If only customers already familiar with the menu get the option of comparing prices, the company stands to gain. Or quite simply if it’s the least expensive option out there, it forces on-the-go customers to pay more for their morning coffee.
Then again, the bottom line is that Starbucks doesn’t have to pad the bottom line. On average, analysts have forecasted SBUX earnings of $1.23 per share for the 2010 fiscal year ending Sept. 30. SBUX is up +8.36% year-to-date against the Dow’s -0.19% and NASDAQ’s -1.70%. Though it’s had an up and down ride along with most stocks for the last six months, gaining +20% in June and then falling again.
So why the coffee coup?
As of this writing, Burke Speaker did not own a position in any of the stocks named here.
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