Starbucks will test $1 cup of Joe

SEATTLE, Jan. 23 (UPI) -- Seattle-based coffee retailer Starbucks said Wednesday it will test a $1 cup of coffee at select stores.

The coffee chain will test out a new "short" cup that will put prices in range of fast-food giant McDonalds Corp, which has plans to add espresso drinks to its menu this year.

The price is significant, as it sneaks in under the prices of fast food retailers, including McDonalds and Dunkin' Donuts, The Wall Street Journal reported.

Although not divulging which stores will try the new concept, Starbucks has also decided to give customers in test stores free refills on their eight-ounce"short" cups,

Free refills are standard fare in many restaurants, but not a common practice in fancier coffee cafes.

Starbucks raised prices recently as a response to the rising cost of milk and blames slower sales on economic pressures faced by its customers.