Starbucks coffee is too expensive, new survey says

By TIM HARLOW, Star Tribune

Last update: August 12, 2008 - 8:51 AM

Starbucks coffee shops seem to be on nearly corner in major U.S. cities, but surprisingly 76 percent of American adults say they rarely or never visit one of the shops, and only 14 percent say they visit occasionally.

That might be because the java giant's prices are too high.

A new survey by Rasmussen Reports shows that 73 percent of Americans say Starbucks coffee is overpriced. Only 6 percent disagreed and 21 percent said they were unsure.

The latest national telephone survey conducted Aug. 8-9 by the independent firm specializing in public opinion polling information comes shortly after the Seattle-based company announced it was closing 600 stores nationwide, including 27 in Minnesota, and another 61 stores in Australia.

Along with the perception of high prices, only 38 percent of the 1,000 adults polled gave the coffee behemoth a favorable rating, while 27 percent had an unfavorable view of the chain. About one-third of respondents had no opinion.

Younger adults have a more favorable view of Starbucks than older adults. Just under 50 percent of respondents 18 to 29 give the chain high marks, while only 28 percent of seniors shared that view. And those who make more than $100,000 a year view the chain more favorably than those who make less than $20,000 a year, the survey said.

Not surprisingly, the main reason people go to Starbucks is for coffee, with 80 percent saying that was their prime reason for visiting. Five percent of respondents said they go for the food, 6 percent go to use the Internet and 8 percent listed "some other purpose."

And though coffeehouses are viewed as places to socialize and hang out, two-thirds of Starbuck's visitors say they get their joe and go. Only 20 percent say they stay around to socialize or use free wireless internet offered in most stores, the survey said.

The survey released Monday has a margin of error of 3 percent.

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