Starbucks reportedly has decided to extend its “Savory” test program that has it selling four breakfast sandwiches on focaccia bread for $2.95 at 20 of its Seattle-area stores.
While according to published reports the company has not made any comment about customer acceptance, if the program is successful and rolled out, it would allow the company to do something it has not yet been able to do -- develop a quality, value-oriented foodservice program.
Both through alliances with other companies and on its own, Starbucks has tested a number of concepts, but without hitting the home run it believes it needs to launch it into an entirely new realm.
While according to published reports the company has not made any comment about customer acceptance, if the program is successful and rolled out, it would allow the company to do something it has not yet been able to do -- develop a quality, value-oriented foodservice program.
Both through alliances with other companies and on its own, Starbucks has tested a number of concepts, but without hitting the home run it believes it needs to launch it into an entirely new realm.
- KC's View:
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While there will be logistical challenges for Starbucks in any sort of broad foodservice expansion, this is a natural for the company if it can get it right. With more than four thousand locations in the US alone, how much business would it have to do at each unit in food (beyond the current bagels-and-muffins) to make a lot of money?
It a person spends $4 on a cup of coffee, and Starbucks can entice just 25 percent of its shoppers to spend another $2 on a food item…yikes!
