Yesteryear's symbol of quality

Feeling the pinch of the economy and encroaching low-cost providers like McDonalds, Starbucks is launching a loyalty program to bolster US sales, reports MediaBuyerPlanner.

CEO Howard Schultz, the brand builder who recently returned from a seven-year break, introduced the plan at a shareholders meeting. The program will include complimentary coffee refills and free add-ons for drink extras like soymilk and flavored syrup.

New espresso machines, fresh-ground coffee, a website — My Starbucks Idea — for online java drinkers to commune, and a loyalty card are also in the works, writes USA Today.

Acknowledging $4 coffee drinks are a losable luxury amidst a recession, Starbucks will focus on drip coffee, a cheaper pour than its fancier latte compatriots. Last month the company took the bold step of closing all its US locations during business hours to train baristas, a move which confused some consumers and gave competitors an opening to promote discounts or free drinks.

Starbucks must tread lightly to avoid tarnishing its premium brand status. It saw first-quarter sales growth slow 17 percent, the smallest gain in two years.

"There is no silver bullet," said Schultz. "But we are going to fight to the death and not allow any company to take our position away from us."