Analysts in the US have highlighted four major growth opportunities for Starbucks based on a presentation by global coffee chain’s executives, with the majority not directly involving its signature product.
The analysts from Morgan Stanley said the group should focus on food, tea, drive-thrus and soda.
Starbucks is currently testing lunch soups and sandwiches at certain locations, with menu items including barbecue pulled pork sandwiches, chicken noodle soup, and a grilled chicken chipotle panini.
The analyst note said: “The lunch test is still in early stage but we see it as big incremental opportunity.”
Another opportunity focuses on the company’s Boulange Bakery operation, with Starbucks in the process of replacing its traditional pastries with sweets from the La Boulange brand.
In addition to offering more edgy “sweet and savory” items, Starbucks is now heating up all pastries before they’re served to customers. “Results are getting better as more cities are added, with strongest adoption on the coasts,” the analysts said.
Starbucks is also continuing to add drive-thrus at locations across America, which Morgan Stanley calls a “meaningful sales driver.” Two-thirds of units Starbucks is building this year have drive-thrus.
The company is currently rolling out more carbonated beverages and Teavana teas, categories that will expand to all locations by the end of 2014. Starbucks also plans to add as many as 1,000 Teavana cafes in the next few years.
