Starbucks Expanding Lunch Menu in Bid to Draw U.S. Diners - Bloomberg

Starbucks Expanding Lunch Menu in Bid to Draw U.S. Diners - Bloomberg: "Facebook
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SBUX:US81.310.84 1.04%
Starbucks Corp. (SBUX) plans to expand its lunch offerings and bring beer and wine to more stores as it seeks to boost U.S. sales with menu items that draw customers after the morning rush.

The world’s largest coffee-shop chain is aiming to double food revenue to more than $4 billion in the next five years, the company told investors at a conference at its Seattle headquarters today. Part of that push includes serving beer and wine at more than 2,000 stores in the U.S. by the end of 2019.

The additional alcohol offerings are estimated to add about $1 billion in revenue as more customers visit Starbucks in the evening, when store traffic is slowest, said Cliff Burrows, group president for the Americas.

“Female customers, in particular, enjoy meeting friends for a glass of wine in the evening,” he said.

A menu expansion began earlier this year, helping food contribute 2 percentage points to same-store sales growth in recent quarters, Starbucks said. The chain has been testing new lunch sandwiches in the U.S. and adding more bakery items and breakfast fare.

Burrows said the key to boosting revenue during the morning rush is selling more breakfast sandwiches to coffee customers. In the company’s fiscal fourth-quarter, which ended Sept. 28, breakfast sandwich sales grew 30 percent, he said."



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