Starbucks Tests Free Refills and $1 Coffee

Starbucks has never been known for cheap coffee--that is, until now. Starbucks Corp. is testing $1 coffee and free refills in its hometown of Seattle. The smaller, "short" cup will sell for $1 and free refills will be offered for brewed coffee. In a statement, the company said, "This test is not indicative of any new business strategy." Starbucks won't comment on specifics of the test campaigns until a final decision is made. However, news of the testing spread just after McDonald's announced the addition of coffee bars to locations across the country. In an effort to combat competition from fast-food rivals and consumer-spending worries, Starbucks reshuffled the company several weeks ago by bringing Howard Schultz back as the company's CEO. The coffee giant also said it would be closing underperforming stores and focusing on international growth.