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With a Starbucks on every corner, chain pivots

Tracey Samuelson Dec 16, 2014
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Forget that grande skim no-foam latte. What used to be “fancy coffee” has become average. That’s pushed Starbucks to open the “Reserve Roastery and Tasting Room” in Seattle, the first of about 100 premium stores the chain has in the works.

Starbucks is trying to hit the reset button and make their ubiquitous coffees feel special again, says Tom Pirko, president of the food and beverage consulting company BevMark. The company is also trying to keep up with an ever-growing number of premium small roasters and cafes.

That increased demand, as well as new interest in coffee from Asian consumers, is pushing up prices for high-end beans, says Jack Scoville, a coffee broker with Price Futures Group.

Elvis Lieban, the co-founder and coffee buyer for Bay Area roaster Artís, says the price of his high-end beans has increased 20 to 25 percent this year, but customers don’t tend to be very price sensitive. 

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