Starbucks brings high-end roastery to New York City
Global coffee giant Starbucks is looking to bolster its luxury credentials in one of the swishest cities on Earth – New York. The company is bringing a high-end café and roastery just down the road from Wall Street, reiterating its premium coffee credentials right next to the analysts that talk about it. Starbucks has always been a luxury brand (albeit, an affordable one). But since it went mainstream and became the global market leader, that hasn’t always been apparent. This move is just the latest in a strategy that will see Starbucks remind consumers (and analysts) that it’s an “upper-end of the market” kind of chain.
Starbucks’ share price has risen by 19% over the past three months
Source: Yahoo Finance
The Reserve Roastery, which is opening alongside Starbucks’ investor conference, will feature three levels and includes a 60-foot bar that sells $23 cocktails composed of cold brew and Veuve Clicquot champagne. There are two coffee-prep areas and a Princi Italian bakery on site that sell pastries and pizza. Bloomberg describes it as a “three-level coffee palace across the street from Chelsea Market.”
The 23,000-square foot facility is the company’s fourth reserve roastery, and opened to the public on Friday. Other roasteries are present in Seattle, Shanghai, and Milan. And next year, two more will be added in Chicago and Tokyo.
Reserve Roasteries are intended to be a major game changer for Starbucks. The company was responsible, all those years ago, for introducing American consumers to a better class of coffee: espressos, lattes, and cappuccinos. In the time intermittent, Starbucks has conquered the globe – but its luxury credentials have eroded. The company is on track to change that, and is betting on the roasteries as a driver. In the words of Kevin Johnson, the company’s CEO, they are meant to be the “ultimate experience in all things coffee.”
Dominion holds Starbucks in its Global Trends Managed Fund.
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