Austin American-Statesman

Starbucks

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Roughly 20 percent of Starbucks’ revenue — which last year was $21.32 billion — comes from food sales.

ing croissants with coffee is one thing, but how do you get customers to pair their afternoon lattes with premade sushi? And how willing are customers to shell out $10 for lunch when they could just as easily go elsewhere?

“Nobody goes to Starbucks to buy food,” Dutton said. “When they do buy something, it’s usually because they’re like, ‘I’m starving and I have to get to work, so I’m going to pick up this yogurt.’”

But that’s not to say customers aren’t shelling out, especially for breakfast. Roughly 20 percent of Starbucks’ revenue — which last year was $21.32 billion — comes from food sales, up from 16 percent five years ago.

In recent years, the company has been successful in beefing up sales of breakfast foods, thanks in part to its purchase of La Boulange bakery for $100 million in 2012. But analysts say growth has plateaued as the company struggles to break into fiercely competitiv­e lunch and dinner markets.

“There is a perception that Starbucks is selling an inferior product,” said Nick Seytan, an analyst for Wedbush Securities. “Customers are saying, ‘How good can that salad or sandwich be if you’re not making it in front of me?’”

Earlier this year, the company said it would stop selling beer and wine, as well as small plates like truffle mac and cheese and baconwrapp­ed figs at its stores. Those additions, rolled out with much fanfare a few years ago, failed to resonate with customers.

Will sushi burritos help change that?

Dutton remains unconvince­d. “This is one more way of outsourcin­g the problem instead of solving it,” he said.

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