Coffee giant Starbucks is trimming its menu in an attempt to re-position itself as the "leading roaster of specialty coffee in the world." The first items to go? Egg sandwiches.
By this fall patrons of the coffee chain will no longer be able to purchase the hot breakfast sandwiches in Starbucks stores.
According to a
Yahoo News report, the sandwiches bring in about $35,000 in annual revenue in an average store. The move will cause short-term losses, but is part of a larger plan designed to pay off in the long-run.
The loss of revenue (while eyeing long-term sustainability) highlights the atmosphere of change in the company since Chairman and CEO Howard Schultz re-established his leadership.
"The decision and the courage it takes to remove something when there's pressure on the business — like the sandwiches — is emblematic that we're going to build for the long-term and get back to the roots and the core of our heritage, which is the leading roaster of specialty coffee in the world," Schultz told The Associated Press.
Last quarter, Starbucks saw sales slide in older stores (those open more than 13 months) and overall profits rose by only 2 per cent. The company is looking for ways to regain some of its slipping market share. Recent announcements have indicated the company plans to slow down its expansion plans domestically, and at the same time is offering new incentives to customers like the
$1 cup of coffee reported earlier. These reports preceded today's announcement regarding breakfast sandwiches in the recent flurry of activity surrounding the chain's sluggish earnings.
Other changes are also in the works, and the CEO promises they will be big. Investors and consumers are eager to hear more details, but Schultz indicated the company won't release details of the "five bold innovations" until its annual meeting on March 19.
