In a sign of self-loathing, Starbucks (SBUX) is turning to non-coffee drinks to rescue it. The coffee chain will begin selling smoothies and Italian iced drinks this summer. The firm hopes the new offerings will bring in additional customers and get old ones to visit more often.
The company claims a method to it madness. According to The Wall Street Journal "Starbucks says they’re the first stage of a broader push into healthier drink and food offerings."
A year-and-a-half ago, Starbucks founder and now CEO Howard Schultz sent a memo to his management saying that the chain was getting away from its quaint coffee store roots. He wanted customers to smell that fresh-brewed Java when they came though the door and see the merriment among the other customers who were so happy to be there.
Instead, now Starbucks sells dozens of drinks, food, music, DVDs, WiFi, coffee makers, and washer-drier sets.
Adding goofy new fruit drinks to the Starbucks menu will not do anything to bring in enough customers to offset declines. It is simply a portent that the chain has lost its way.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.