USA – Coffeehouse chain Starbucks has announced plans to phase out the Princi brand of Italian baked offerings from its upscale locations in China and the US.
Although the coffeehouse chain has removed Princi branding from its upscale Roastery and Reserve locations, the chain’s food offerings, which include Italian-style croissants and salami sandwiches will remain on the locations’ menus.
However, despite the scaling back of the Princi brand in the upscale locations, it will continue to be featured in 12 Starbucks locations, including the Tokyo and Milan Roasteries. It will also continue to be featured in 10 other locations in Japan.
The decision to scale back on Princi branding reflects a shift in the coffeehouse chain’s strategy. The Princi initiative was a vision of former CEO Howard Schultz.
The strategic partnership with Princi began in 2016 when the former CEO was inspired by a meeting with baker Rocco Princi in Italy.
Shultz planned to open 24 upscale Roastery and Reserve locations globally.
A Starbucks spokesperson told media outlets, “We look forward to continuing to offer customers at our Starbucks Reserve locations in the US the same menu of handcrafted, artisanal food made from high-quality ingredients and prepared daily by our chefs.”
According to the chain, the change is part of new CEO Brian Niccol’s strategy of addressing current sales challenges.
After assuming the CEO role on September 9, Shultz announced plans to introduce several changes to the company’s operations.
The CEO revealed he has been spending time in outlets with employees since his appointment. Miccol admitted the company has not been delivering according to its potential.
In an open letter, Nicol said, “We aren’t always delivering. It can feel transactional, menus can feel overwhelming, the product is inconsistent, the wait too long or the handoff too hectic.”
The new CEO predicts third and fourth-quarter results will be dismal, especially after same-store sales in the US declined by 2% in Q2 2024.
The company said it expects 2024 global revenue growth in the low-single digits, down from the previous range of 7% to 10%, which itself was down from a prior Q4 2023 guidance of 10% to 12%.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
