Starbucks Corporation (SBUX) Testing Weekend Brunch

Advertisement

Starbucks Corporation (NASDAQ:SBUX) is testing out a weekend brunch menu at select locations.

Starbucks Corporation, Starbucks, SBUX, SBUX Stock, Starbucks Brunch, Weekend BrunchThe weekend brunch menu is only being tested out at 78 Starbucks locations located in Portland, Ore., and Seattle, Wash., which is where the company’s headquarters is located. menu items being offered at these locations include French toast, Belgian waffles and quiche.

Starbucks’ weekend brunch menu is likely an effort by the company to increase its food sales. The coffee chain only gets 19% of its revenue from food sales. However, current limitations at its stores may get in the way of increasing food sales. The biggest problem is that the chain only heats up food for customers due to it not having much in the way of kitchens as its retail locations.

Starbucks said that it is still learning about customer interest from its weekend brunch menu test. As such, it would not say what its plans are for the menu in the future. The early morning test from the coffee chain will bring it to customers’ attention when the company sees the most activity in the day, reports Fortune.

SBUX’s decision to limit its brunch menu test to the weekend was likely a calculated one. According to Forbes, interest in the term “brunch” has been climbing since 2004 and there’s a spike of interest during the weekend. This, combined with Americans having more disposable income, could be good news for the coffee chain’s limited test run of the menu.

SBUX shares were down 1% as of Tuesday afternoon.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2016/09/starbucks-corporation-weekend-brunch-sbux-stock/.

©2024 InvestorPlace Media, LLC