Starbucks adds two egg dishes in new bid to boost its food business
The chain will add a chicken, maple butter and egg sandwich to its permanent menu starting today, as well as a potato, cheddar and chive bake, according to a statement. It’s 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 like a baked apple croissant.
In the year through Oct. 1, sales for the all-day breakfast lineup grew 20% to $3 billion at North American company-operated stores, accounting for half of the region’s food business and about 8% 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.
Starbucks is also expanding its beverage menu, adding a hazelnut oatmilk variety to its iced shaken espresso product line, which accounts for $1 billion in sales in the US.
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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% in 2023, trailing the 24% advance of the S&P 500 Index.