Starbucks Coffee Co. has helped to transform coffee in America from a mere cup of joe to a gourmet beverage experience. From its humble beginnings as a small store in Seattle to a $9.4 billion corporation with more than 14,000 cafes around the globe, Starbucks has for many years been setting trends with its dark-roasted Arabica coffee, customized espresso drinks and indulgent frozen beverages.
The corporate charge at Starbucks is to create products that will set it apart from competitors, a point hammered home last February in an internal memo that was leaked to the media. In it, chairman Howard Schultz said the Seattle-based company had become vulnerable.
“Push for innovation,” he wrote, “and do the things necessary to once again differentiate Starbucks from all others.”
Among those leading the innovations are Susan Aley, a category manager who worked on Starbucks’ new lunch line; Jennifer Dimaris, director of global beverage research and development; and Laurie Friesen, interim director of food in the United States, who started as a store manager.
Dimaris says for beverages, the company looks for new flavors and then adds its own spin, such as with Green Tea Frappuccino. That item was rolled out in 2005 after consumers started dabbling in green tea as a healthful drink.
A veteran of General Mills and Jack in the Box, Dimaris gets ideas from a unique resource: Starbucks baristas.
“The excitement of the idea gains momentum as it burns through the organization,” Dimaris says. The idea for Green Tea Frappuccino “bubbled up in our Asia-Pacific region,” she adds.
Dimaris says customization is a trend that keeps growing. The company offers 87,000 beverage combinations. Now the chain is responding to growing interest in light choices. Starbucks recently switched to 2-percent milk from whole milk as its standard in response to consumer interest in more healthful eating. Also new this summer are a light version of the Strawberries and Crème Frappuccino and sugar-free caramel syrup.
“We continue to find ways to offer more options so customers can still have that amazing Crème Frappuccino venti beverage but can also customize according to their wants or needs for that day,” Dimaris says. “Some days they want to go with their skinny sugar-free vanilla lattes. They want the choice.”
A recent hit is Cinnamon Dolce Latte, made with cinnamon and brown sugar. It was launched in 2006, and a light version followed early this year. More high-calorie treats are in favor, too.
“We are selling a lot of indulgent beverages,” Dimaris says. “Customers are still pursuing that need state.”
Guests are also looking for healthful food options, Friesen says. So Starbucks offers low-fat muffins as well as goodies like sticky cinnamon rolls.
“Customers are much more educated now about taking a look at not just calories or just fat,” she says. “They look at the whole picture.”
An emerging trend is smaller snack portions, such as Brownie Bites in New York and petite scones in some West Coast stores, Friesen says. They sell well, she says, and generally portions are not huge.
“If you have a latte or Frappuccino,” she says, “you need to be able to have one of our food offerings and feel satisfied.”
Bold flavors and ethnic tastes are trends at lunch, Aley says. In June, Starbucks launched a nationwide lunch menu, including Fiesta Salad, which includes salsa, cilantro and fresh lime. The national food team works closely with regional food managers to develop locally relevant products, Aley says.
Playing on the popularity of Asian flavors, one regional product is White Chicken Curry with Couscous.
8trends for ’08 BOLD FLAVORS ETHNIC INFLUENCES SMALLER PORTIONS HEALTHFUL OPTIONS CUSTOMIZATION INDULGENCE SMALL TREATS CONVENIENCE, ESPECIALLY LUNCH SALADS AND SANDWICHES FOR TAKEOUT IN THE MORNING
“We were looking for distinct and innovative flavors,” Aley says. The chilled chicken has “interesting Thai curry notes you don’t see in other restaurants,” she adds.
STARBUCKS COFFEE CO. HEADQUARTERS: SeattleUNITS: 14,395 worldwide, including 10,295 in the United StatesREGION: The United States and about 40 other countriesPRICES: 12-ounce brewed coffee, $1.45 to $1.70; 12-ounce caramel Frappuccino, $3.25 to $3.75; yogurt parfaits, $3.45; lunch salads, $4.95 to $5.75LATEST MENU ROLLOUT: lunch salads, including Tomato Mozzarella Insalata with pearls of fresh mozzarella, grape tomatoes, basil, imported olive oil, garlic and seasonings; Fiesta Salad with roasted corn, black beans and savory grilled chickenBEST-SELLING BEVERAGES: brewed coffee, latte, mocha, Caramel Macchiato, Caramel FrappuccinoPRODUCT THAT FAILED TO CATCH ON: Chantico, a rich, hot chocolate
Convenience is key, Friesen notes. When customers stop in for their morning coffee fix, they are buying salads and sandwiches to eat later.
“That is a big trend for us,” she adds. “We have our lunch items available from the moment we open our doors.”