Starbucks Corporation (NASDAQ:SBUX) is spreading to other locations in a bid to conquer the market. The company will now start selling Affogatos at 10 ten its renovated Reserve Bar points in Boston, Los Angeles and Washington, D.C. Affogatos is a type of espresso and is served together with ice cream.
Despite Starbucks’s poor impression in terms of sales and failing to impress investors in the late January, the Reserve Roastery & Tasting Room based in Seattle rose by 18% during the holiday quarter. This comes after an impressive performance of 24% during the previous quarter that ended October 2. During an evening conference call on Thursday, Starbucks executives told analysts that the size of an average transaction increased four times of a typical store.
The current CEO at Starbucks, Howard Schultz will be stepping done in April so as to concentrate on the concept of Reserve. This will enable Reserve to get the attention deserved. Reserve Seattle Roastery has been offering Affogato since June 2016, featuring among the store’s top five menu even during the winter. This signifies its growing popularity.
The price of Affogato will range between $6 and $8.5, with the lowest priced being the Classic Affogato at $6 and the highest priced being the Cold Brew Malt at $8.5. The Cold Brew Malt is prepared with vanilla ice cream, small-lot cold brew and chocolate bitters.
Starbucks is also in the process of testing the much cheaper Affogato menu in 100 Orange County, Calif places that will be without small batch cold brew. On Starbucks’ menu, cold brew malt made with chocolate bitters and Starbucks’ Narino 70 will be the most expensive options going for $6.40
This is not the first time Starbucks is reinventing its menu. The company already offers wine and beer with a selection of dinner food as happy hour offerings. Starbucks also has an alternative menu which doesn’t include drinks like bloody Mary’s.
THE MORNING REPORT
Start your workday the right way with the news that matters most.
Last year the chain introduced three flavors on the affogato but countrywide testing of the flavors reflects the chain’s effort to experiment with more expensive items and roll them out to the market