In a significant shift for the iconic coffee chain, Starbucks has announced plans to phase out its partnership with the Princi brand, removing its artisanal baked goods from most of its high-end Roastery and Reserve locations in the U.S. and China. This decision, as revealed in an internal memo, marks a departure from a vision once championed by former CEO Howard Schultz, who viewed Princi as a pivotal element in elevating the Starbucks experience.
Founded in Milan, Princi is renowned for its artisanal breads and pastries, and the partnership with Starbucks began in 2016 under Schultz’s leadership. The collaboration aimed to introduce Princi’s high-quality offerings to Starbucks’ Reserve Roasteries in key cities such as New York, Seattle, Tokyo, and Chicago. The first standalone Princi bakery opened in Seattle in 2018, further integrating this brand into the Starbucks portfolio, with aspirations for over 1,000 standalone stores across the U.S.
However, the recent decision to phase out Princi-branded items signals a strategic pivot as Starbucks shifts its focus under new CEO Brian Niccol, who took the helm earlier this month. While no specific timeline for the phase-out has been disclosed, Starbucks has assured customers that its Reserve locations will still offer a range of handcrafted, artisanal food options made from high-quality ingredients. This includes sandwiches, croissants, and other food assortments, albeit without the Princi label.
The decision comes on the heels of a challenging period for Starbucks, characterized by sagging sales and a decline in profits under previous leadership. These struggles played a significant role in the transition from Laxman Narasimhan, whose brief tenure ended amid disappointing stock performance, to Niccol, who previously led both Taco Bell and Chipotle to success. His experience in revitalizing brands may be crucial as Starbucks navigates this new chapter.
Howard Schultz’s vision for Starbucks was largely inspired by the rich coffee culture he encountered in Italy, where espresso bars serve as community hubs. This cultural influence was pivotal in shaping the high-end coffee experience that Starbucks aims to offer through its Reserve stores. Schultz’s aspirations included not only the expansion of Princi but also a significant increase in Reserve locations. However, the recent changes suggest a reevaluation of those ambitions, focusing instead on a streamlined menu that stays true to the core Starbucks experience.
Interestingly, while Princi items will no longer be available in U.S. and Chinese locations, they will still be offered at 11 Reserve locations in Tokyo and the Roastery in Milan. This distinction highlights a potential strategy to maintain a unique and upscale product offering in markets where the brand may resonate more deeply.
As Starbucks continues to evolve, this strategic recalibration raises questions about the future direction of the company. Will it return to its roots, focusing more on innovative coffee offerings and less on diversifying its food menu? The decision to remove Princi could be seen as a move to hone in on what made Starbucks a household name—its commitment to quality coffee and a welcoming atmosphere.
In summary, while the phase-out of Princi-branded goods marks the end of a significant chapter in Starbucks’ gourmet strategy, it also opens the door for new possibilities under Niccol’s leadership. As the company seeks to revitalize its brand and reconnect with consumers, it remains to be seen how these changes will influence Starbucks’ identity in an increasingly competitive market. The coffee giant’s ability to adapt and innovate will be critical in maintaining its status as a leader in the global coffee industry.