Starbucks is introducing a new automated espresso machine and getting back to grinding beans in its stores as the coffee retailer seeks to re-energize its slumping business.
Facing thousands of shareholders eager to hear the company's plans, Starbucks Corp chairman and chief executive Howard Schultz on Wednesday announced the arrival of the Mastrena, a new machine designed to leave a smaller margin for error in pulling shots and steaming milk.
While likely to disappoint some longing for the return of old-school manual machines, the Mastrena is about 18cm shorter than machines in stores now, making it easier for baristas to interact with customers.
"It's not just a piece of equipment," Schultz said of machine made by Thermoplan, the same Swiss company that makes Starbucks' current machines. "It's an unbelievable tool that will provide us with the highest-quality, consistent shot of espresso that will be second to none."
In an interview before the company's annual shareholders' meeting, executives said the company will also quit using flavor-locked bags of pre-ground coffee next month. Instead, it will grind beans in most of its US stores to bring back the aroma that has been missing since it started using sealed grounds years ago.
Michelle Gass, Starbucks' senior vice president of global strategy, said she expects the change will improve sales, which have been slipping amid a softening economy and growing competition from cheaper rivals.
Starbucks' stock has been falling steadily for more than a year, losing more than half its value since late 2006, when it was trading at close to US$40 a share. Its shares were down US0.53, or 3 percent, at US$17.71, in afternoon trading on Wednesday.
Most retailers have taken a serious hit amid a downturn in the housing market, rising gasoline and food prices, and a widening credit crunch.
But Schultz, who returned as CEO in January after Starbucks forced out his predecessor, Jim Donald, has argued that Starbucks' bigger problem was that it spent the last few years focusing too much on growth and not enough on coffee and customers.
Schultz also announced Starbucks has bought a small Seattle company that makes a machine that brews coffee much like a French press. The Clover, made by The Coffee Equipment Company, is already in use in some Seattle and Boston stores and will appear in others soon, though the company did not disclose details on when and where.
Starbucks will soon introduce a new "everyday" drip coffee -- a signature brew called Pike Place Roast that baristas will serve up daily in all its stores -- rather offering new blends from day to day.
"As we talked to customers over the last year, what we heard was that the morning occasion was very, very habitual and they want a taste they can count on," Gass said.
Customers will have two other choices for drip coffee: one other caffeinated variety and one decaf.
Schultz said more changes are in store, including an entry into the fast-growing energy-drink market later this year, although details were not announced on Wednesday.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS