Would you pay $10 for a cup of coffee? Starbucks is betting that patrons of its new higher-end Reserve bars are willing to pay a hefty premium for a gourmet coffee experience.
Reuters visited one of the upscale Reserve locations in Manhattan and described some of the connoisseur items available: $10 "flights" of Reserve brews, a nitro cold brew and a $10 cup of coffee made using a complex glass siphon system.
According to Reuters, the goal with the Reserve brand is to raise the company's profile among millennial consumers.
Apparently, Starbucks has this pricey coffee brewing at its investor day Wednesday.
Will Starbucks' bet pay off?
The report comes at a time of transition for Starbucks. It's longtime CEO Howard Schultz announced last week that he would be stepping down from his current role and moving over to executive chairman of the beverage empire.
As he explained in a statement the day the news broke, he will be shifting gears to focus on "ultra-premium retail formats," such as the Reserve brand.
People have pointed out that at one point, paying $2 for coffee was seen as a bit much.
Like it, can't afford it
Cash-strapped millennials have indicated that higher-end drinks are what they crave -- but it doesn't mean they can afford it.
"If I had the money to spend more toward coffee, I'd do it," Megan Sauers, 24, told Reuters as she took a look at the new Reserve bar offerings.
At the investor day meeting, Starbucks made it clear that stores with Reserve bars and stand-alone Reserve stores would be a high priority. Reuters says the company has 1,000 sites in the works.
Meanwhile, Starbucks also has plans to build out Roastery and Tasting rooms.
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