Starbucks (SBUX) does not seem to know how to leave well-enough alone. It is a coffee chain. But, it has tried to sell music, DVDs, coffee machines, and breakfast and lunch foods.
In a sign of how badly its menu is doing, it will change almost the entire menu.
According to Reuters, Starbucks is reworking 90 percent of its baked goods. One of the goals of the change is to get consumers to believe that are getting more value for their money from food items. The other is to sell products that people will find more healthy.
Starbucks says that food sales are well under one-fifth of its revenue. It should probably consider exiting the business completely. Its menu has mostly fresh food. What is not sold one day cannot be saved for the next. That means there is some spoilage rate and expense for items which are not sold. Food is also costly to ship. Coffee can be transported in simple containers.
It is not likely that consumers walk though the doors of Starbucks for food. They are looking for coffee. Trying to sell them something else not only dilutes the brand. It also means that there is one more thing Starbucks has to keep trying to fix in the name of pushing its revenue up.
There is nothing wrong with just selling coffee.
Douglas A. McIntyre
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
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.