Starbucks is discontinuing the Princi-branded pastries at numerous Starbucks Reserve stores in the United States and China. Starbucks explains that although menu items such as ciabatta sandwiches and tarts will still be offered at these locations, the Princi branding will no longer be featured on menus and signs.
Starbucks first collaborated with Princi in 2016 by becoming a worldwide licensee of the brand, introducing its pastries at Reserve stores and Roasteries. This partnership led to the opening of the standalone Princi bakery in Seattle in 2018.
In the future, Princi-branded menu items will continue to be offered at 11 Starbucks Reserve stores in Tokyo and the Roastery in Milan. There are currently no intentions to shut down any Starbucks Reserve stores.
The Impact of Market Shifts on Strategic Decision Making
I view Starbucks' choice to diversify beyond coffee ventures as a major strategic decision over the last decade. Teaming up with Princi has proven to be a successful move, establishing Starbucks as a premium spot for pastry dining. Furthermore, the gradual elimination of certain locations reflects a shift in business priorities to better match market demands, indicating a renewed focus on its core values and coffee operations.