Starbucks Signals Lunchtime Growth

Coffeehouse chain is planning to grow its overall food sales by focusing on its lunchtime fare.

June 27, 2017

NEW YORK – Lunch will be a big focus for Starbucks as the coffeehouse chain seeks to boost its food sales, reports CNBC.

Starbucks CFO Scott Maw told the news source that the chain is testing ways to draw more customers to its locations during the lunchtime daypart. Maw said that five years ago, about 16% of Starbucks’ total revenue came from food and today that number is about 20%. “It's all about providing higher-quality, fresh food at lunch,” he told CNBC.

In Chicago, Starbucks has been testing a food program called "Mercado," where fresher options are prepared by employees onsite and sold during the same day. CNBC notes that food selections offered at Starbucks are typically prepared and packaged off-site and delivered to stores weekly, with many items arriving frozen.

Maw told the news source that Mercado has been successful, and that Starbucks is planning to roll the concept out into other cities this year.

"For Starbucks, we are focused on two things," Maw told CNBC. "If you want to be a successful physical retailer, you have to deliver an experience ... a third-place environment."

Starbucks also hopes to increase interest in lunchtime menu items through its digital platform, where customers can order ahead, pay and pick up.

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