Many of Starbucks’ past CEOs have emphasized the importance of food to the cafe chain’s market strategy. However, a surge in drive-thru, mobile, and delivery sales has solidified food as a priority for current CEO Laxman Narasimhan, reports Food Business News.
At the Morgan Stanley Global Consumer & Retail Conference, Narasimhan shared some of the challenges and opportunities to deliver food. One focus for the retailer is all-day breakfast and snacking, especially in the afternoon.
“There’s a real play in the afternoon that we haven’t fully tapped into yet, and that’s going to require innovation,” said Narasimhan. “It’s going to require digital, it’s going to require customization, it's going to require attach, and we have the capacity and the ability to do it. It’s an area that will be a big growth opportunity for us going forward.”
To achieve food goals, the CEO said they are improving warming ovens and developing “Siren System”—the technology that helps to simplify the food and beverage platforms, reducing the time to make a drink or prepare a savory menu offering.
However, despite a renewed shift to food, beverages will always be the company’s bread and butter.
“[Food] will always be an attach business for us,” he said. “We’re always beverage first.” Full Story
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