Inside Starbucks’ Risky Bet on Selling Food

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Starbucks is betting that consumers and investors alike will have an appetite for its products beyond coffee. With the recent acquisitions of Teavana, Evolution Fresh and La Boulange Café and Bakery, the Seattle-based coffee giant is aiming to expand its offerings and capture the midday and afternoon traffic that has been elusive so far.

It’s not the first time the coffee chain has tried the risky concept.“The first time they tried to expand into food, there were some missteps because of the way they incorporated food into the logistics of the restaurant,” says Darren Tristano, executive vice president of Technomic, Inc. With last year’s purchase of La Boulange for $100 million, what Starbucks has done is “found a way to incorporate sandwiches and baked goods into that concept to create a broader meal offering.” Read More

Posted on October 10, 2013 and filed under The Chipotle Effect.