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
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