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Published by:
Amity Research Centers (2019)
10 pages
Data source:
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In 2018, coffee behemoth Starbucks had unveiled its first standalone location of Princi, a high-end Italian bakery and cafe in Seattle. The Milan based bakery which the Seattle retailer had backed in 2016 offered artisanal baked goods, lunch options, signature beverages and of course, coffee. During the last few years, food had become a key growth driver for Starbucks' US business, consistently contributing to its comparable growth. Consequently, the coffee chain which aimed to double its food business by 2021 was looking forward to leverage the European style food concept of Princi to improve its profitability in the long run. The independent Princi, which included 'an oven for on-site baking and a manual espresso machine', was making downtown Seattle, the testing ground for Starbucks' upscale retail strategy. Princi, which was also the sole food purveyor for the premium Starbucks Reserve and Roastery locations worldwide, signified Starbucks' endeavours to explore a new business with its brand-within-a-brand strategy. Although the innovative bakery seemed to enhance the culinary offerings of Starbucks, it remained to be seen whether Princi would turn out to be a successful venture considering the chain's troubled acquisition of La Boulange bakeries. Can the freestanding chapter of Starbucks' gourmet food revitalise the coffee corporation's flagging sales in the US? Would Princi boost Starbucks' food business and enable the chain to counter competition from popular third wave coffee chains like Blue Bottle and Stumptown?

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Corporate sustainability; Strategic growth initiative; Constant currency basis; Princi; Howard Schultz; Upscale strategy; Brand-within-a-brand strategy; Kevin Johnson; Starbucks reserve and roastery; Rocco Princi; Italian bakery; Teavana; La Boulange bakeries; Seattle


The events covered by this item took place in 2018.

Geographical setting

United States

Featured company

Company name:
Starbucks Corporation
USD 6.31 billion (July 2018)
Public company

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