Starbucks is a global coffee chain, originating from the U.S. . The business has been pursuing a long-term strategy of diversifying its core offering beyond beverages; this is designed to help differentiate the brand, which is very important considering coffee is almost a commodity. The latest development is that Starbucks now plans to increase its focus on food. In the U.S. Starbucks is now serving La Boulanger pastries – a bakery that the firm acquired for $100 million – and Evolution Harvest granola bars – again acquired for a tasty $30 million. Across the sea in the U.K Starbucks has launched a new food range, with the ‘Duffin’ doughnut/muffin hybrid serving as the flagship product.
This post will look at the benefits and drawbacks to Starbucks of expanding into the food market.