Starbucks adds 2 egg dishes in new bid to boost its US$3 billion food business
STARBUCKS is expanding its food lineup in its latest attempt to bring its coffee-loving customers in the door outside of the peak morning hours.
The chain will add a chicken, maple butter and egg sandwich to its permanent menu starting Wednesday (Jan 3), as well as a potato, cheddar and chive bake, according to a statement. It is also launching a vanilla-bean custard danish as a seasonal offering.
Starbucks wants to bolster its afternoon business as part of a broader strategy to drive growth by launching new beverages, creating products designed to appeal to customers at specific times of the day and nudging guests to add food to their orders.
The Frappuccino giant has previously attempted to sell more grub with its beverages, but it has run up against challenges including complaints about high prices and cold pastries. Lately, more guests have been adding food to their orders, thanks in part to seasonal items such as a baked apple croissant.
In the year through Oct 1, sales for the all-day breakfast lineup grew 20 per cent to US$3 billion at North American company-operated stores, accounting for half of the region’s food business and about 8 per cent of Starbucks’ total revenue. Plans to drive growth include boosting the snacks and bakery offerings.
“You’ll see us expanding our product menus in ways that tide customers over between lunch and dinner,” chief marketing officer Brady Brewer said in November.
A NEWSLETTER FOR YOU
Lifestyle
Our picks of the latest dining, travel and leisure options to treat yourself.
Starbucks is also expanding its beverage menu, adding a hazelnut oatmilk variety to its iced shaken espresso product line, which accounts for US$1 billion in sales in the US.
The chain posted results that surpassed expectations for the quarter ended Oct 1 and provided a better-than-anticipated outlook for fiscal 2024. But concerns have emerged over the company’s sales after third-party data pointed to a slowing late last year.
The Seattle-based company’s shares fell 3.2 per cent in 2023, trailing the 24 per cent advance of the S&P 500 Index. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Lifestyle
Former Zouk morphs into mod-Asian Jiak Kim House, serving laksa pasta and mushroom bak kut teh
Massimo Bottura lends star power to pizza and pasta at Torno Subito
Victor Liong pairs Aussie and Asian food with mixed results at Artyzen’s Quenino restaurant
If Jay Chou likes Ju Xing’s zi char, you might too
Mod-Sin cooking izakaya style at Focal
What the fish? Diving for flavour at Fysh – Aussie chef Josh Niland’s Singapore debut