Starbucks
has been leading in restaurant industry in sales growth and unit growth for
over 20 years with little competition or challenge. All the while Starbucks continues to expand it retail partnerships around
the world selling ‘’kyan coffee” (canned) and selling lots of it elevating the Starbucks brands
relevance with consumers according to Steven Johnson Grocerant Guru® at Tacoma,
WA based Foodservice Soltuions®.
Starbucks
partnership have been and continue to be the right fuel to drive new electricity into Starbucks top line sales and bottom line profits
according to Johnson. In the minds-eye
of Johnson, there is one dominate element that will power success within retail
and foodservice over the coming years and that is partnerships.
Johnson calls it the new
electricity that is partnerships specifically strategic
partnerships. The new electricity must be very efficient
for the supply and includes such things as fresh food, grocerant consultants, urban farming (produce, seafood, etc.), autonomous delivery, cashier-less
retail, cash-less payments, digital hand held marketing.
Retailers
the ilk of Starbucks in order to survive the next generation of retail must
embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable in some
form. That will require brands to embrace new fresh food partnerships
more now than ever before according to Johnson.
Starbuck’s
investments with cold CPG beverage products have now driven it in store focus
to revolve around cold beverage offerings as they continue to expand its lunch
menu edifying a grocerant niche mix and match meal bundling opportunity that is
second to none in the industry according to Johnson.
Rosalind
Gates Brewer, chief operating officer and group president of Americas, stated Starbucks
plans to continue investing in cold beverage innovation and expanding its
afternoon menu offerings.… Cold isn’t just for summertime anymore,”
Brewer
continued “Five years ago, cold was about 37% of our beverage mix, and now it’s
over 50%. With 2017, total cold beverage sales in the U.S. company and operated
stores reaching nearly $5 billion. So, we’re building multibillion-dollar
platforms within cold.”
Ms.
Brewer called Starbucks the “market leader” in the cold brew coffee category
and announced the company will be expanding the availability of its Nitro Cold
Brew platform from 2,300 stores around the world to 4,000 by the end of the
year.
Grocerant
niche mix and match bundling drives sales.
Brewer Stated “…the biggest opportunity for food innovation is for
lunch,” …we will offer customers more of what they are expecting and elevating
our current Bistro Box line, which has grown at a rate of 20% in each of the
past two years. We will also continue to roll out Mercato regionally, with more
than 1,000 stores by the end of the year.”
All good
retailers understand that selling hot food hot and cold food cold is job
one. Success does leave clues and
remembering that evolving food retail includes both hot and cold foods. Are you evolving your retail food platform to
include fresh? Or are you evolving your restaurant platform to include branded
CPG products?
Foodservice Solutions®
specializes in outsourced business development. We can help you identify,
quantify and qualify additional food retail segment opportunities or a new menu
product segment and brand and menu integration strategy. Foodservice Solutions® of
Tacoma WA is the global leader in the Grocerant niche visit
Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant