Franchise News
Reuters: Starbucks Courts Millennials with $10 Coffee at New Reserve Bars
Will millennials shell out the money to buy Starbucks’ new exotic coffee?
Starbucks has been shaking things up in a big way as they round out 2016. Just a few days ago, Starbucks corp chief executive and co-founder Howard Schultz announced he’d be stepping down in the new year. Today, Starbucks announces the worldwide expansion of 12,000 more locations within five years. And also in the works? New $10 coffee options to attract millennials.
As Schultz transitions to his new role as executive chairman in 2017, he’s focusing his attention on opening 1,000 new “Reserve” brand stores, as well as adding Reserve bars to 20 percent of the brand’s traditional cafes.
The Reserve brand will sell exclusively exotic and small-lot coffees that can cost $50 per 8-ounce bag, reports Reuters. They’ll also serve wine, beer and spirits. Currently, Starbucks already has Reserve locations open in some major cities, like Chicago, New York City and Atlanta.
"There is always a market for what is different, special and rare,” said market researcher Robert Passikoff, president and founder of Brand Keys. “But the minute you become so available that anyone can get what you are selling, you lose your cachet."
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
