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."