After announcing their decision to buy Bay Bread LLC for $100 million in cash, Starbucks is launching their first tea-only store in October. The store will be branded under their Tazo name, according to Bloomberg.
The storefront will have a tea bar where customers can custom-mix different teas to make personalized blends with the help of employees. The company is even going as far as to call such employees “tea partners”. The stores will offer over 80 different kinds of loose-leaf tea, while also offering iced teas, tea lattes, and baked goods and chocolates.
The store is part of the company’s goal of expanding past their current approximate 17,000 flagship cafes around the world. Other avenues are their Evolution Fresh Inc. juice store and the recently acquired Bay Bread LLC stores.
They will also be selling a single-cup coffee machine this fall for home brewing of lattes and other coffee drinks.
Business Section: Investing Ideas
Starbucks has found another way to expand their name and grow their revenue in addition to their fresh juice bars.
Though their coffee shops have been a massive success, will tea have the same demand from consumers?
Use Kapitall tools to analyze Starbucks and their competitors. Do you think they will succeed at providing the new offering?
Interactive Chart: Press Play to compare changes in market cap for SBUX, DNKN, PEET, and GMCR:
Interactive Chart: Use the Turbo Chart to compare the stock performance of SBUX and PEET against the performance of the S&P 500 Index (SPX):
(Written by Danny Guttridge)