Friday, November 24, 2017
Business

Pizza with your coffee? Starbucks soon will be opening Italian restaurants

RECOMMENDED READING


After years of trying to win over lunch and dinner crowds, Starbucks is preparing to open its first stand-alone Italian restaurant.

The company is teaming up with Princi, a small chain of 24-hour bakeries in Milan and London, to offer customers freshly made items including focaccia sandwiches, margherita pizzas and tiramisu. The first stage of the partnership will debut Tuesday, when Starbucks opens a Princi bakery in its upscale Reserve Roastery in Seattle. The company plans to eventually open bakeries inside all of its Reserve locations, and next year hopes to open stand-alone Princi eateries across the country. The openings will be in New York, Seattle and Chicago.

"We’re getting into the food business," Howard Schultz, the chairman of Starbucks, said in an interview. "Princi will be fully integrated with bakery operations, so not only will we be roasting coffee, but we’ll be baking bread, pastries — the kind of Italian pastries you’ve never seen in America."

The move is the latest effort by the 45-year-old coffee purveyor to expand into food. Many of its attempts — prepackaged cake pops, truffle mac and cheese, ‘sushi burritos’ — have fizzled, analysts say, in part because Starbucks stores haven’t had kitchens. If customers are paying $10 for lunch, analysts say they want it to be prepared on the spot.

"There is a perception that Starbucks is selling an inferior product," Nick Setyan, an analyst for Wedbush Securities, told The Washington Post in September. "Customers are saying, ‘How good can that salad or sandwich be if you’re not making it in front of me?’ "

The new Princi locations are to have full kitchens staffed with bakers and "food ambassadors" called commessas. The menu, with about 100 items, includes baked eggs for breakfast, caprese salads for lunch, cocktails and small plates for dinner, and tarts, cookies and crostatas for dessert. Items will be priced between $3 and $11.

In 1980, Italian baker Rocco Princi started the boutique company, which now has five European locations. In July, Starbucks announced that it had invested in Princi and had become the company’s global licensee. (Princi’s U.S. workers will be employed by Starbucks.)

"We have never baked in our stores in 45 years. But all of that will change with the creation of this unique partnership," Schultz said in a statement at the time. "Rocco and his team at Princi possess a passion for handcrafted food and artisanal baked goods that mirrors how I feel about our coffee."

The announcement comes as Starbucks prepares to open its first coffee shops in Italy next year, starting with a Reserve Roastery in Milan.

"Having Princi in the Roastery in Italy will give us instant credibility, among other things," Schultz said.

The Seattle-based chain has tried for years, with mixed success, to get its customers to think beyond beverages. About 20 percent of Starbucks’s revenue — which last year was $21.32 billion — comes from food sales, up 16 percent from five years ago.

But this isn’t the first time Starbucks has pinned its hopes on a stand-alone bakery. In 2012, the company paid $100 million for La Boulange, a San Francisco-based company with 23 stores. Starbucks had high hopes then, too, with plans to open about 400 new locations in five years.

But it didn’t take long for those plans to fall flat. Three years later, Starbucks said it would be closing its La Boulange bakeries because they were "not sustainable for the company’s long-term growth."

Comments
Black Friday still a brick-and-mortar experience for some

Black Friday still a brick-and-mortar experience for some

TAMPA — Standing in a frantic line at Best Buy on Thanksgiving, one young woman beat the system when she showed off the receipt for her new TV, which she had just purchased on her phone. She was waiting to pick it up."I didn’t know you could do that,...
Updated: 1 hour ago

Woman, 51, robbed in Tyrone Square Mall parking lot, police say

ST. PETERSBURG — A woman was robbed after a man followed her to her car in a mall parking lot Thursday night and shot once at her, police said. The 51-year-old woman, whose identity St. Petersburg police are withholding, was not injured. She was walk...
Updated: 1 hour ago
Take steps against holiday fraud with private WiFi, fraud alerts

Take steps against holiday fraud with private WiFi, fraud alerts

The holiday shopping season bring hosts of discounts and deals, but it also brings something less cheery — fraud. According to a forecast by ACI Worldwide, a payment processing company, retailers are expected to see a 30 percent jump in fraud this ye...
Updated: 4 hours ago
Fourth Street’s mom and pop motels are a dying breed

Fourth Street’s mom and pop motels are a dying breed

ST. PETERSBURG — Billboards as far north as Tennessee beckoned tourists by the thousands to St. Petersburg’s Fourth Street calling it "the longest motel street in the world" in the 1940s and ’50s. There were 95 motels between the Gandy Bridge and Cen...
Updated: 6 hours ago
Suburban-bound millennials and other 2018 housing trends to watch

Suburban-bound millennials and other 2018 housing trends to watch

What’s ahead for real estate in 2018? Zillow economists put their heads together and offered up a laundry list of forecasts and predictions. The chief one to remember? Inventory shortages of homes for sale which challenged the market in 2017 will pe...
Updated: 9 hours ago
Across country, small retailers aim for emotional ties big chains may lack

Across country, small retailers aim for emotional ties big chains may lack

Associated PressSome smaller retailers will tug at shoppers’ heartstrings during the holidays, trying to create an emotional experience or connection that a big national chain might not provide.Store owners are going well beyond the usual holiday dec...
Updated: 5 hours ago
Inkwood Books among retailers banking on ‘Small Business Saturday’

Inkwood Books among retailers banking on ‘Small Business Saturday’

TAMPA — By Tuesday evening, at least 50 cardboard boxes were still stacked against the shop’s wall, each labeled clearly with a black sharpie. "Biographies" "Pets" "Fiction" "Music" While the front of the store and new children’...
Updated: 7 hours ago
As Tampa Bay economy matures, more key people bear watching. Let’s get started.

As Tampa Bay economy matures, more key people bear watching. Let’s get started.

What’s coming down the economic pike for Tampa Bay? Who’s driving this metro economy into 2018 and beyond? Change — people, issues, business focus — can be a good thing. It keeps places like geographically challenged Tampa Bay nimble with fresh blood...
Updated: 11 hours ago
Six years and counting: Allegiant Air reaches agreement with flight attendants

Six years and counting: Allegiant Air reaches agreement with flight attendants

ST. PETERSBURG — After six years of negotiations, Las Vegas-based Allegiant Air and its flight attendants union reached a tentative contract to improve worker pay and benefits and solidify airline policies."We feel like it’s an agreement that is cert...
Published: 11/22/17
Workers at luxury St. Pete condo tower say they are owed thousands

Workers at luxury St. Pete condo tower say they are owed thousands

ST. PETERSBURG — Nearly three dozen workers at ONE St. Petersburg, a luxury condo tower under construction in the heart of downtown, haven’t been paid in weeks and are owed thousands of dollars.With the holidays nearing, some of the men say they are ...
Published: 11/22/17