News

Coinstar to turn change into coffee

June 21, 2004

SEATTLE - Coinstar is adding Starbucks gift cards to its lineup of services in its latest bid to attract customers and increase revenue, according to an article in The Seattle Times.

For the next six months, Coinstar users in Seattle, Las Vegas and Philadelphia grocery stores can turn spare change into coffee cards at coin-counting machines, company President Rich Stillman said.

According to the article, Coinstar hopes the test will help bring in more customers because the coffee card option does not impose the customary 8.9 percent service fee.

The company also introduced a prepaid MasterCard, electronic payroll service, prepaid wireless airtime, and options to buy cellular ring tones, games and graphics over the past 12 months. In some locations, customers can pay household bills.

The article states that Coinstar expects to add 1,000 coin-counting machines by the end of 2004 and introduce its prepaid centers into convenience stores, smaller retail stores, airports, train stations and bowling alleys.

"Their new business moves have raised a few eyebrows because they're going into uncharted business territory," said Alan Robinson, research director for Delafield Hambrecht. "But they've long stated they want to expand their in-store base and build their business ... and this is a way to do it."