When it comes to affordability, Starbucks falls behind its competition, at least according to a new report.
Only 51% of customers believe the Seattle-based coffee chain is affordable, data collected by Technomic via Restaurant Business states. That ranking is the lowest among seven large coffee shop chains.
So who nabbed the top spot? Canada’s Tim Hortons, which has locations in 15 U.S. states, according to its website. Seventy-nine percent of Tim Hortons’ customers surveyed said they believe it was affordable.
Dunkin’ and Peet’s Coffee tied for the second spot at 74%, followed by Dutch Bros at third with 73%.
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Restaurant Business, a sister company of Technomic, says Starbucks customers have higher incomes than patrons at other coffee chains.
Starbucks did not immediately respond to a FOX Business request for comment.
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Back in May, a nonprobability survey conducted by LendingTree found 78% of consumers now consider fast food to be a “luxury” purchase due to how expensive the meals have become.
Half of those polled said they view fast food as a luxury because they are struggling financially. This is especially true among Americans who make less than $30,000 a year (71%), parents with young children (58%), and Gen Zers (58%).
Americans love their fast food, but a majority say they are pulling back on their consumption due to high prices. The findings show 3 out of 4 Americans typically eat fast food once a week, but 62% of respondents said they are eating it less frequently due to the cost.
Companies took notice, and over the summer began a value meal war.
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McDonald’s launched a $5 value meal in June that they are continuing until the end of the year. Popeyes, KFC, Subway and Jimmy John’s all did, as well.
Along with discounted prices, companies like Chick-fil-A brought back fan-favorite limited-time menu items.
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Last month, Starbucks announced that the chief executive of Starbucks North America, Michael Conway, had decided to retire, and will not be replaced. Conway, who assumed the role of North America CEO in April, will stay with the company through the end of November as an executive adviser before his official departure after 11 years at the company.
FOX Business’ Breck Dumas contributed to this report.
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