I love Starbucks. I think Howard Schultz is awesome. His first book Pour Your Heart Into It is a must read for any entrepreneur.
To put it bluntly he is a CEO I admire. The passion he puts into his company is infectious.
Starbucks is not a deli.
If I want lunch I am going to a place that makes sandwiches. Or a place that makes pizza.
Expanding into the “lunch world” will make them a coffee shop that sells sandwiches. Don’t do it.
I was in this business for a long time. Margins will go down and people will be pissed off who want a coffee while they wait longer.
Starbucks Corporation (NASDAQ: SBUX) is known almost globally as a coffee roaster, coffee shop and café. However, the company is seeking to expand its footprint beyond coffee and morning/afternoon snacks, and into the lunch world.
The company recently set a target of doubling its food sales over the next five years. Latest Ratings for SBUX DateFirmActionFromTo Mar 2015Credit SuisseInitiates Coverage onNeutral Feb 2015JefferiesMaintainsBuy Feb 2015Piper JaffrayMaintainsOverweight
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Don’t do it.
We buy snacks there now because it is convenient. I am there to buy coffee. Not for the food. It’s a point of sale impulse buy.
Open a second company. Let everyone know the Starbucks’ process is behind the operation. Let everyone know you are in charge. We trust you. Start a new brand.