Starbucks is Opening More Reserve Bars in Canada

The Seattle-based coffee chain Starbucks has quickly conquered the market with over 28,000 stores across the globe.

In February of 2017, the chain opened its first Starbuck Reserve, a luxury coffee store that takes the cafe experience to the next level, while serving rare and unique coffees.

After rolling out the first few stores, the coffee chain also said that it has plans to expand with over 1,000 Reserve stores.

"While our Roasteries are designed to be bold, educational environments, our Reserve store takes the best of coffee craft as well as artisan baking and layers in a marketplace-style customer experience creating a space that has both energy and moments of intimacy," Liz Muller, Starbucks senior vice president of Creative, Global Design and Innovation, in a press release.

Apparently, these Reserve stores are doing especially well in the Canadian market. There are already three Reserve Bars in Canada, two in Ontario and one in North York. These Reserve Bars usually feature elaborate decor and store designs. The newest Reserve in North York has a wraparound bar.

But coffee isn't the only thing on the menu. These bars feature much more food options than the traditional Starbucks chain like menu items chorizo mac and cheese and the pear and brie flatbread.

The company is planning to open more of these elevated coffee chains and they will be bigger than the first three Canadian stores. According to "Retail Insider," sources are saying that a large downtown Toronto location could be in the works, which would span more than one level and be more in line with big stores such as a new Reserve/Roastery location in Shanghai."

The biggest store will be opening this year and will have 43,000-square-feet and four floors. This massive Reserve store will be on Michigan Avenue in Chicago and will take up a whole acre of prime city real estate.

Learn more about the Starbucks Reserve stores and the new stores opening in Canada at "Narcity" now.

It makes sense that Starbuck Reserve Bars are taking off because the artisan coffee and tea market is booming. Consumers want beverages with unique origins. Check out the video below where Michael Sheridan, the director of Sourcing and Shared Value at Intelligentsia Coffee and Allen Wang, founder & partner of Kung Fu Tea talk about consumer beverage trends and how their brands are thriving in this saturated artisan drink market.

Which Restaurant Stocks are a Good or Bad Investment Come 2019?

Shutterstock

Shutterstock

When it comes to the stock market, analysts are always trying to make predictions that will pay off.

So what will 2019 bring when it comes to restaurant stocks?

According to a recent report from “Barron’s,” analysts are recommending that traders consider investing in restaurant brands with massive growth potential, instead of the stocks that are trading at low prices.   

“We favor companies with clear same-store sales drivers and are less focused on bargain-hunting in these later stages of the cycle, as it remains a challenging environment for turnarounds, especially in full-service,” writes the Investment Banking Firm Jefferies.

Analyst Andy Barish agrees and isn’t recommending purchasing any full-service restaurant stocks. He thinks Red Robin, in particular, is a poor investment.  

Interestingly, he recommends investing in Chipotle Mexican Grill, a restaurant chain that has been slowly trying to recover from its food safety crisis of 2015.

“Chipotle, which it thinks will continue to benefit from the work undertaken by new management to drive store traffic, grow the digital business, and boost efficiency while growing same-store sales around 6%. The stock was recently about flat near $441; Jefferies’ price target is $550,” writes “Barron’s.”

Then Barish also said that the QSR chains McDonald’s and Starbucks are other restaurant stocks that are poised to perform well on this market.  

Jefferies anticipates that same-store sales for McDonald’s will spike by 3 percent over the next two years. The firm also predicts that Starbucks shares will increase to $76 from the recent $65.

Barish mentions the threat of Amazon as a reason why restaurant stocks are more attractive versus retail stock.  

““We continue to expect premium valuations for the best performers, especially as [the] supply of investable restaurant equity diminishes further...and investors continue to see value in restaurants’ relatively stable trends versus retail, and insulation from risks around tariffs and Amazon.com [AMZN],” said Barish.

Read more about why these restaurant stocks are expected to have a great 2019 at “Barron’s” now.

However, as reported by Foodable Network, Amazon’s Whole Foods is already taking a bite out of the restaurant business. Then there are Amazon’s new Amazon Go casher-less stores, which have become very popular during the week during lunchtime hours due to its grab-and-go options.

In The Barron Report episode below, Host Paul Barron outlines some of the power players including Amazon and Uber Eats that are taking away customers and revenue from restaurants.  

Discussion over Cold Brew Coffee is Up, According to Foodable Labs

It can be said that in recent years, cold brew coffee has quickly made its way into mainstream.

Cold brew has a smoother chocolate coffee flavor as opposed to other versions of coffee. The reason behind this is the fact that more coffee grounds are used and the steep time can be quite long and delicate since instead of hot water, room temperature or cold water is used for this process.  

This bitterless beverage has in turn carved itself a path to reach consumers directly through grocery stores in made-to-go bottles, as well as being incorporated as a drink menu item in coffee shops and some emerging restaurant brands, alike.

Courtesy of Jameson

Courtesy of Jameson

Cold brew is actually experiencing a 2.4 percentage increase in integration on the Top 150 Emerging Brands. However, when it comes to the integration of cold brew on independent restaurant menus, the drink is actually experiencing a 23.4 decrease year over year when 5,000 concepts were analyzed by Foodable Labs.

This could be a reason why cold brew has been declining in consumer sentiment in the past twelve months. Its score has dropped a whopping 16.2 points from a high 87.4 to a low 71.2 out of 100 points total.

One wouldn’t think this was the case from looking at the new products brands like Jameson and Apothic have been launching.

Jameson Cold Brew

The brand known for its triple-distilled, Irish whiskey decided to try its luck with a bottled version of the Irish coffee cocktail using cold brew from Fairtrade Arabica beans. The cocktail features “intense coffee bean aromatics combined with vanilla nuttiness of Jameson,” according the brand’s website.

Courtesy of Apothic

Courtesy of Apothic

Apothic Brew

As Foodable has reported in the past, Apothic Brew released in April of this year a red blend wine infused with cold brew. The winemaker, Debbie Juergenson, “realized that many of the characteristics in cold brew coffee and red wine naturally complement each other.” The result? A balanced red wine with a red fruit, mocha, and oak flavor.

Despite the lower consumer sentiment score, social discussion over the topic has actually been up 3.1 percent in the past year. This could be due to the integration of the beverage into established beverage brand products.

So, what exactly is motivating brands to jump outside of their comfort zones and explore new innovative ways to spice up their offerings with flavors like those from cold brew?

What’s for sure is that there’s a growing appreciation for the beverage as Americans continue to learn more about the sourcing and creation process of coffee.

To learn about how popular cold brew coffee brands are ranked by consumer sentiment and who is the leading the demographic consuming it, watch the Industry Pulse video above!

Starbucks and Seattle Declare War on Straws: Is It Enough?

Starbucks and Seattle Declare War on Straws: Is It Enough?

Starbucks and the city of Seattle have been getting a lot of attention in the last few days. Sunday, Seattle’s ban on plastic straws, utensils, and cocktail picks went into effect, affecting 5,000 restaurants in the city, according to CBS News.

And Starbucks announced Monday their commitment to removing plastic straws from all 28,000 locations by 2020. Instead they will offer either a recyclable plastic lid or an “alternative material straw,” expected to be made of paper says the New York Times.

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Coffee Chain Powerhouse Starbucks Launches Plant-Based Coffee Smoothies with Almond Milk

Coffee Chain Powerhouse Starbucks Launches Plant-Based Coffee Smoothies with Almond Milk
  • Dairy-free smoothies are on the rise.

  • Starbucks launches two new almond milk based bottled beverages.

100 percent dairy-free, grab-and-go “Doubleshot Coffee Smoothies”, are a result of highly demanded plant-based options from Starbucks. Available in both dark chocolate-banana and vanilla-honey-banana, the smoothies are made with almond milk.


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